United States 2004 Foreign Aid

Lane Vanderslice

(February 7, 2004)  The United States foreign aid budget has finally been decided on by Congress. Hunger Notes presents the main Congressional allocations, which will determine how the United States spends money for foreign aid in 2004. Foreign aid involves much more than aid to poor people.  We have included some links to agencies such as USAID that implement these programs and provide further detail.

EXPORT AND INVESTMENT ASSISTANCE

No funds appropriated

DEVELOPMENT ASSISTANCE

USAID Child Survival $1,835 million (The total is divided into 7 program categories shown here,  which for some unexplained reason do not add up to the total. ):

$330 million child survival and maternal health
$28 million for vulnerable children (other than those affected by HIV/AIDS)
$516.5 million for HIV/AIDS
$185 million for other infectious diseases, including TB and malaria

$375 million for reproductive health/family planning
$400 million for the Global Fund to Fight AIDS, Tuberculosis and Malaria
$491 million for the Global HIV/AIDS Initiative

This is a USAID program principally implemented by USAID's Bureau of Global Health (GH). The links are provided to the specific GH offices involved. The Global Fund is an independent organization with participation by many governments and international institutions such as the World Bank and the World Health Organization. The Global HIV/AIDS Initiative is managed by the State Department.

USAID Development Assistance $1,385 million (Basic Education $235 million specified).  This is the second part of USAID assistance, including education, democracy and governance and economic growth (which includes microenterprise development and agriculture, which are especially important for poor people).

International Disaster and Famine Assistance $255.5 million ($20 million available for famine prevention). This is the financing provided to USAID's Office of Foreign Disaster Assistance.The $20 million is the beginning of an important new initiative to reduce famine.  The United States has provided billions of dollars in food assistance to countries such as Ethiopia to combat famine over the last 30 years or so.  However, much less has been provided in development assistance to prevent famine. The $20 million is the beginning of a U.S. effort to address the structural causes of famine.

Millennium Challenge Corporation $1 billion ($650 million from Foreign Operations Appropriations, $350 million from elsewhere.  This is one of four major development initiatives by the Bush administration, including, in order of magnitude: 1) assistance to Iraq, 2) assistance to Afghanistan, 3) the Millennium  Challenge Corporation, and 4) the overall AIDS initiative. The Millennium Challenge Corporation is just in the process of being set up. It is designed to reward governments of countries that demonstrate effective political policies (e.g., low levels of corruption) and economic policies.

Debt Restructuring $95 million (Tropical Forest Conservation Act $20 million; $75 million for first of two contributions to the Heavily Indebted Poor Countries Trust Fund).

Migration and Refugee Assistance $21 million (most funds available in State Department Appropriation bill).

Independent Agencies $345 million

Inter-American Foundation $16.3 million

African Development Foundation $18.7 million

Peace Corps $310 million

International Affairs Technical Assistance--Department of the Treasury $19 million

Global  Environment Facility $139 million

Contribution to the (World Bank) International Development Association $913 million

Contribution to the Asian Development Fund $144 million

Contributions to the Africa Development Fund and Bank $150 million

Contribution to the European Bank for Reconstruction and Development

International Organizations and Programs $321 million  (UNICEF $120 million, UNDP $120 million, UN Voluntary Fund for Victims of Torture, $5 million)

International fund for Agricultural Development $15 million

 

ASSISTANCE TO EASTERN EUROPE AND THE FORMER SOVIET UNION

Assistance for Eastern Europe and the Baltic States $445 million

Assistance for the Independent States of the Former Soviet Union $587 million

ASSISTANCE FOR ANTI-DRUG ACTIVITIES

International Narcotics Control and Law Enforcement $242 million

Andean Counterdrug Initiative $731 million

USAID OPERATING EXPENSES

USAID Operating Expenses $604 million USAID administers many of the above activities, including USAID Child Survival assistance, USAID Development Assistance, Assistance for Eastern Europe and the Baltic States and the Independent States of the Former Soviet Union, and the Andean Counter-drug Initiative.  It administers some of the Economic Support Fund. It is thus difficult to assign this funding to a particular analytic category such as development assistance.

Capital Investment Fund $82 million

ECONOMIC  AND MILITARY ASSISTANCE TO ALLIES AND STRATEGIC AREAS

Economic Support Fund $2,132 million (The largest recipients by country are: Egypt $575 million; Israel $480 million; Jordan $250 million;  West Bank/Gaza $75 million)

International Military Education and Training (IMET) $92 million

Foreign Military Financing Program $4,394 million.  (The largest recipients are Israel, $2,160 million, Egypt $1,300 million and Jordan, $206 million.)

Non-Proliferation, Anti-terrorism, Demining, and Related Programs $353 million

Not included in this report are U.S. food assistance to developing countries, State Department funding for Migration and Refugee Assistance, supplemental appropriations for foreign aid (none so far for 2004 but a very substantial one in 2003, principally for Iraq and Afghanistan) nor foreign activities of U.S. government agencies, such as Health and Human Services. ($754 million in global assistance is anticipated in the HHS-Labor appropriations.).

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