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STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2009 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION SUBCOMMITTEE ON STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS NITA M. LOWEY, New York, Chairwoman JESSE L. JACKSON, JR., Illinois FRANK R. WOLF, Virginia ADAM SCHIFF, California JOE KNOLLENBERG, Michigan STEVE ISRAEL, New York MARK STEVEN KIRK, Illinois BEN CHANDLER, Kentucky ANDER CRENSHAW, Florida STEVEN R. ROTHMAN, New Jersey DAVE WELDON, Florida BARBARA LEE, California BETTY MCCOLLUM, Minnesota NOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. NISHA DESAI, CRAIG HIGGINS, STEVE MARCHESE, MICHELE SUMILAS, and CLELIA ALVARADO, Staff Assistants PART 5 Page Foreign Assistance in the 21st Century: Proposals for Reform and Restructuring .................................................................................................. 1 Millennium Challenge Account Budget ....................................................... 147 U.S. Agency for International Development............................................... 281 U.S. Department of State Operations Budget ............................................ 381 HIV/AIDS and Global Health Programs....................................................... 525 Emergency Supplemental Request for Iraq and Afghanistan ............... 651 Fiscal Year 2009 International Affairs Budget Request .......................... 741 Contributions to International Peacekeeping Activities (CIPA) and the Contributions to International Organizations (CIO) Accounts .. 809 U.S. Policy and Programs in Iraq.................................................................. 853 FY 2009 International Programs Budget..................................................... 917 Printed for the use of the Committee on Appropriations G N RI A E H with C69 P D1 O R P jbell on VerDate Nov 24 2008 04:44 Jun 03, 2009 Jkt 048733 PO 00000 Frm 00001 Fmt 7513 Sfmt 7513 E:\HR\OC\A733P1.XXX A733P1 P A R T 5 — S T A T E , F O R E IG N O P E R A T IO N S , A N D R E L A T E D P R O G R A M S A P P R O P R IA T IO N S F O R 2 0 0 9 G N RI A E H with C69 P D1 O R P jbell on VerDate Nov 24 2008 04:44 Jun 03, 2009 Jkt 048733 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 E:\HR\OC\A733P1.XXX A733P1 STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2009 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION SUBCOMMITTEE ON STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS NITA M. LOWEY, New York, Chairwoman JESSE L. JACKSON, JR., Illinois FRANK R. WOLF, Virginia ADAM SCHIFF, California JOE KNOLLENBERG, Michigan STEVE ISRAEL, New York MARK STEVEN KIRK, Illinois BEN CHANDLER, Kentucky ANDER CRENSHAW, Florida STEVEN R. ROTHMAN, New Jersey DAVE WELDON, Florida BARBARA LEE, California BETTY MCCOLLUM, Minnesota NOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. NISHA DESAI, CRAIG HIGGINS, STEVE MARCHESE, MICHELE SUMILAS, and CLELIA ALVARADO, Staff Assistants PART 5 Page Foreign Assistance in the 21st Century: Proposals for Reform and Restructuring .................................................................................................. 1 Millennium Challenge Account Budget ....................................................... 147 U.S. Agency for International Development............................................... 281 U.S. Department of State Operations Budget ............................................ 381 HIV/AIDS and Global Health Programs....................................................... 525 Emergency Supplemental Request for Iraq and Afghanistan ............... 651 Fiscal Year 2009 International Affairs Budget Request .......................... 741 Contributions to International Peacekeeping Activities (CIPA) and the Contributions to International Organizations (CIO) Accounts .. 809 U.S. Policy and Programs in Iraq.................................................................. 853 FY 2009 International Programs Budget..................................................... 917 Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE 48–733 WASHINGTON : 2009 G N RI A E H with C69 P D1 O R P jbell on VerDate Nov 24 2008 04:44 Jun 03, 2009 Jkt 048733 PO 00000 Frm 00003 Fmt 7513 Sfmt 7513 E:\HR\OC\A733P1.XXX A733P1 COMMITTEE ON APPROPRIATIONS DAVID R. OBEY, Wisconsin, Chairman JOHN P. MURTHA, Pennsylvania JERRY LEWIS, California NORMAN D. DICKS, Washington C. W. BILL YOUNG, Florida ALAN B. MOLLOHAN, West Virginia RALPH REGULA, Ohio MARCY KAPTUR, Ohio HAROLD ROGERS, Kentucky PETER J. VISCLOSKY, Indiana FRANK R. WOLF, Virginia NITA M. LOWEY, New York JAMES T. WALSH, New York JOSE´ E. SERRANO, New York DAVID L. HOBSON, Ohio ROSA L. DELAURO, Connecticut JOE KNOLLENBERG, Michigan JAMES P. MORAN, Virginia JACK KINGSTON, Georgia JOHN W. OLVER, Massachusetts RODNEY P. FRELINGHUYSEN,New Jersey ED PASTOR, Arizona TODD TIAHRT, Kansas DAVID E. PRICE, North Carolina ZACH WAMP, Tennessee CHET EDWARDS, Texas TOM LATHAM, Iowa ROBERT E. ‘‘BUD’’ CRAMER, JR., Alabama ROBERT B. ADERHOLT, Alabama PATRICK J. KENNEDY, Rhode Island JO ANN EMERSON, Missouri MAURICE D. HINCHEY, New York KAY GRANGER, Texas LUCILLE ROYBAL-ALLARD, California JOHN E. PETERSON, Pennsylvania SAM FARR, California VIRGIL H. GOODE, JR., Virginia JESSE L. JACKSON, JR., Illinois RAY LAHOOD, Illinois CAROLYN C. KILPATRICK, Michigan DAVE WELDON, Florida ALLEN BOYD, Florida MICHAEL K. SIMPSON, Idaho CHAKA FATTAH, Pennsylvania JOHN ABNEY CULBERSON, Texas STEVEN R. ROTHMAN, New Jersey MARK STEVEN KIRK, Illinois SANFORD D. BISHOP, JR., Georgia ANDER CRENSHAW, Florida MARION BERRY, Arkansas DENNIS R. REHBERG, Montana BARBARA LEE, California JOHN R. CARTER, Texas TOM UDALL, New Mexico RODNEY ALEXANDER, Louisiana ADAM SCHIFF, California KEN CALVERT, California MICHAEL HONDA, California JO BONNER, Alabama BETTY MCCOLLUM, Minnesota STEVE ISRAEL, New York TIM RYAN, Ohio C.A. ‘‘DUTCH’’ RUPPERSBERGER, Maryland BEN CHANDLER, Kentucky DEBBIE WASSERMAN SCHULTZ, Florida CIRO RODRIGUEZ, Texas ROB NABORS, Clerk and Staff Director (II) G N RI A E H with C69 P D1 O R P jbell on VerDate Nov 24 2008 04:44 Jun 03, 2009 Jkt 048733 PO 00000 Frm 00004 Fmt 7513 Sfmt 7513 E:\HR\OC\A733P1.XXX A733P1 STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2009 WEDNESDAY, JANUARY 23, 2008. FOREIGN ASSISTANCE IN THE 21ST CENTURY: PROPOSALS FOR REFORM AND RESTRUCTURING WITNESSES MARY BUSH, FORMER CHAIRMAN, HELP COMMISSION LEO HINDERY, FORMER VICE CHAIRMAN, HELP COMMISSION LAEL BRAINARD, VICE PRESIDENT AND DIRECTOR, GLOBAL ECON- OMY AND DEVELOPMENT, BROOKINGS INSTITUTE GEORGE RUPP, CEO AND PRESIDENT, INTERNATIONAL RESCUE COM- MITTEE; CSIS COMMISSION ON SMART POWER Mrs. LOWEY. Good morning. The Subcommittee on State, Foreign Operations, and Related Programs will come to order. I am very pleased to open our first hearing of the year on a sub- ject that is very much on everyone’s mind. I am going to begin now. Mr. Wolf, my Ranking Member is delayed, and I know Mr. Hindery is on the way. First, let me note that we have been trying to reform our foreign aid program almost since the day it was established. There have been efforts to retool our development toolbox in virtually every administration. To some extent, such tinkering is necessary to con- tinue to adapt our assistance programs and mechanisms to the changing needs of the day. However, these efforts have resulted in layer upon layer of new programs, new mandates, new bureau- cratic structures, new congressional and administrative directives being heaped on an overstretched and out-of-date infrastructure. There is finally an understanding in this post-9/11 world of the critical nature of foreign assistance and development programs to our national security. In fact, in 2002, President Bush labeled global development as the third pillar of national security, alongside defense and diplomacy. With an ever-increasing demand on our foreign assistance programs, we find ourselves with a creaking and overloaded bureauc- racy implementing a broad and confusing panoply of assistance programs with a greater emphasis and expectation for quick re- sults. To be clear, our current assistance and development programs are advancing our security and foreign policy interests, alleviating suffering, and reducing poverty around the world today. The men and women who serve at the U.S. Agency for Inter- national Development, the State Department and the myriad of other agencies that implement these programs are no doubt dedi- (1) G N RI A E H with C60 P D1 O R P woods2 on VerDate Nov 24 2008 05:46 Jun 03, 2009 Jkt 048733 PO 00000 Frm 00001 Fmt 6633 Sfmt 6633 E:\HR\OC\A733P2.XXX A733P2 w 2 cated and highly capable. We meet these great people wherever we visit, and I think all of my colleagues here have had the same expe- rience. However, neither the programs nor the people are able to keep pace with the increasing demands and the changing political and security environment in which they may operate today. A recent Congressional Research Service study found that nearly one-fourth of our foreign aid dollars are appropriated to and imple- mented by the Department of Defense—I was shocked by that, al- though I knew it was happening. And another 22 percent is imple- mented by other departments and agencies. Only 53 percent of our total foreign aid programs are executed by the State Department and USAID. The growing role of the military in implementing our humanitarian and development programs is an area of great con- cern to me and will be the topic of a special hearing of this subcommittee in coming months. However, as we consider reforming the foreign assistance apparatus, the diffusion of resources and responsibilities across the pro- liferation of agencies and departments must be reexamined. The in- volvement of 10 Cabinet departments over 15 sub-Cabinet or inde- pendent agencies has created a management nightmare for our Ambassadors in the field, and has led to a lack of oversight, ac- countability, coordination and coherence of assistance programs. The effectiveness of our programs and the efficiency of our bu- reaucracy can and must be approved if we are to achieve our foreign policy objectives and retain the confidence of the American people. It is time for us to look at the foreign assistance apparatus of the United States not with an eye toward further tinkering around the edges, in my judgment, but with the aim of reinventing it to reflect the challenges and needs of the 21st century. What is needed is a renewed, more focused mission and mandate, a better understanding of the expectations of Congress and the American people and a streamlined, coherent and empowered structure that can implement this vision. There have been a number of reports and studies over the past 2 years that examine the key issues and provide recommendations to guide reform efforts. Today, we have with us some of the individ- uals that have led these efforts. The most recent report is from the HELP Commission, which was established by Congress in the fiscal year 2004 omnibus appropriations bill under the initiative of my good friend and esteemed Ranking Member, Frank Wolf. This bipartisan commission recently released its report. We are pleased to have with us the Chair and Vice Chair of the Commission, Mary Bush and Leo Hindery. Com- missioners Hindery, Jeffrey Sachs, and Gayle Smith issued a sepa- rate report with additional recommendations on the structure of foreign aid; and I look forward to discussing the recommendations of both the majority and the minority reports. In addition, we have Dr. Lael Brainard, Vice President of the Brookings Institution, just recently having had her third young one. And we really appreciate your coming out from maternity leave today, but I know what a passion this is for you. Lael co- chairs the Brookings CSIS Task Force on Transforming Foreign As- sistance for the 21st Century. Their report is entitled Security by G N RI A E H with C60 P D1 O R P woods2 on VerDate Nov 24 2008 05:46 Jun 03, 2009 Jkt 048733 PO 00000 Frm 00002 Fmt 6633 Sfmt 6633 E:\HR\OC\A733P2.XXX A733P2 w 3 Other Means: Foreign Assistance, Global Poverty and American Leadership. And, finally, we have George Rupp, President of the Inter- national Rescue Committee, who has participated in both the CSIS Commission on Smart Power and InterAction’s effort on foreign aid reform. All of the reports presented today call for increased coherence and coordination of the United States Government’s foreign assistance programs. They also call for the establishment of new structures to achieve our foreign assistance goals. The majority HELP Commission report focuses on the need for coordination of our defense, diplomacy and development priorities, calls for a restructured State Department and a unified security budget. I would like to hear more about this proposal and how we can ensure that the expertise and independence of our development programs are not lost when they are incorporated into the State Department. The other reports recommend a new Cabinet-level agency for foreign assistance and development programs. This would elevate development in a new and exciting way, but I also have concerns that this might result in an eventual separation between our foreign assistance programs and our foreign policy agenda. There are others who are not here today but whose work is also important to the discussion. The Center for Global Development and the Senate Foreign Relations Committee recently released reports that I would urge members to read. I would also like to insert into the hearing record and have in- cluded in your folders a letter outlining reform recommendations from Brian Atwood, Peter McPherson, the USAID Administrators in the Clinton and first Bush administration, respectively. 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