22 May 2003
Source:
http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=03052105.clt&t=/products/washfile/newsitem.shtml
US Department of State
International Information Programs
Washington File
_________________________________
21 May 2003
(But votes not to have a separate governing body) (710) Kathryn McConnell Washington File Staff Writer Washington -- A Senate panel May 21 adopted a bill to establish a supplemental U.S. foreign aid account but stripped it of a Bush administration provision that would have required it to be managed by a new corporation governed by a board of directors. The Foreign Relations Committee also approved a bill authorizing appropriations for a package of foreign aid programs and the U.S. Agency for International Development (USAID) for the fiscal year beginning October 1 (FY04), adding an amendment offered by Senator Christopher Dodd, a Democrat, that would add Caribbean countries to a list of African countries targeted for assistance by the Global Fund to Fight AIDS, Tuberculosis and Malaria. Senators Chuck Hagel, a Republican, and Joe Biden, a Democrat, sponsored the amendment making the proposed foreign aid Millennium Challenge Account (MCA) the sole responsibility of the secretary of state. They said a new bureaucracy, the proposed Millennium Challenge Corporation, would weaken the State Department's ability to effectively manage foreign aid. The Millennium Challenge Corporation would undercut the secretary's "power and leverage" with foreign aid and development assistance, Hagel said. The MCA is a major Bush administration proposal that would dramatically increase available U.S. foreign aid funds and channel the additional money to countries that adopt market-based policies, govern justly and invest in their own populations. The senators specifically opposed the administration's proposed inclusion of the secretary of the Treasury and director of the Office of Management and Budget (OMB) on the corporation's board. "OMB, in particular, does not have the expertise or experience to make foreign policy," Hagel said. The committee also approved an amendment offered by Democrat Jon Corzine that would set aside 10 percent of MCA funds for assistance to "bridge countries," or countries that are close to, but do not fully meet, the fund's criteria for aid. Both bills now go to the full Senate for debate. The House of Representatives also must approve its own versions of the MCA and foreign aid authorization bills. Final versions of both bills must be passed by the House and Senate before being sent to the president for signature or veto. The committee voted to reduce by $300 million to $1,000 million funding for the MCA in FY04, saying that the program needed time to become established and effectively distribute its funds. The panel also voted to cut $31 million from the administration's requested $731 million to fight drugs in the Andean region. The committee approved two new funds requested by the administration -- the Complex Foreign Contingencies Fund and a Famine Fund. It also approved authorization of a $15 million Radiological Terrorism Threat Reduction Act and a Global Pathogen Surveillance Act. The Complex Foreign Contingencies Fund would support peace and humanitarian intervention operations to prevent or respond to foreign territorial disputes, armed ethnic and civil conflicts, and acts of ethnic cleansing, mass killing or genocide. The Radiological Terrorism Threat Reduction Act would authorize the secretary of State to provide contributions and technical assistance to the International Atomic Energy Agency (IAEA) to deal with the threat of radioactive materials being dispersed by conventional explosives, or "dirty bombs." The foreign aid measure includes the authorization of appropriated funds for humanitarian assistance and reconstruction efforts in and around Iraq. It would authorize continued funding for programs focusing on strengthening and preserving democratic institutions and processes, and conflict resolution in transition countries. The measure includes the authorization of an additional $70 million over the administration's request for the Freedom Support Act to aid countries of the former Soviet Union and a $40 million increase in funding for Eastern European and Baltic states under the Support for East European Democracy (SEED) Act. The measure authorizes increased funding of international military training, peacekeeping, nonproliferation, anti-terrorism and demining programs. Peacekeeping would get a $6 million increase over the administration's request and nonproliferation, anti-terrorism and demining would get a $100 million increase. The bill would authorize funding for the Inter-American Foundation, African Development Foundation and the Asian Development Fund. The bill would make permanent a provision that foreign aid can be provided through nongovernmental organizations (NGOs) as well as through government bodies. (The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)