Table Of ContentSTATE, 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
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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
U.S. GOVERNMENT PRINTING OFFICE
48–733 WASHINGTON : 2009
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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)
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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 ad-
ministration. 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 glob-
al development as the third pillar of national security, alongside
defense and diplomacy.
With an ever-increasing demand on our foreign assistance pro-
grams, 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-
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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 sub-
committee in coming months.
However, as we consider reforming the foreign assistance appa-
ratus, 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 for-
eign 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 appro-
priations 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
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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 assist-
ance programs. They also call for the establishment of new struc-
tures 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 for-
eign assistance and development programs. This would elevate de-
velopment in a new and exciting way, but I also have concerns that
this might result in an eventual separation between our foreign as-
sistance 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 re-
ports 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.
[The information follows:]
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