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Unless otherwise noted, all U.S. budget data is presented by fiscal year and expressed in constant 1994 dollars. Numbers may not add to totals because of rounding. The possible cuts in military forces and spending that are discussed in this study would be in addition to those that are already planned by the Clinton Administration and due to be completed later in the decade. The possible increases in U.S. foreign aid, by contrast, are assumed to be additional to current (1994) levels of funding since detailed data for later in the decade are not available. Cover photo shows a farmer at a "miracle rice" project in the Philippines sponsored by the U.S. Agency for International Development. (Photo courtesy of AID) |
As part of reshaping foreign policy for the post-Cold War era, should the United States increase its support for programs to enhance economic development, conflict resolution, and demilitarization in other countries? This study explores that question and its potential implications for the federal budget. The study was conducted at the request of the Chairman of the Subcommittee on Europe of the Senate Committee on Foreign Relations.
Michael E. O'Hanlon wrote the study with the assistance of Kent Christensen, Geoff Cohen, Rachel Schmidt, and Joseph C. Whitehill. The study was prepared under the supervision of Robert F. Hale, R. William Thomas, and Neil M. Singer. Robert Dennis, Nicola O. Goren, Victoria Greenfield, Roger E. Hitchner, Michael A. Miller, and Elliot Schwartz provided significant guidance and numerous comments. William P. Myers and Elizabeth Chambers provided certain budget data, and Victoria Farrell supplied data about the Russian economy.
Thoughtful reviews of a draft of the study were furnished by Bruce Blair, Barry Blechman, Tony Gambino, John Waterbury, and Charles Weiss. John Anderson, Samuel Baldwin, Nicole Ball, Henry Bienen, Robert Blake, Sam Carlson, Joseph DeStefano, George Ingram, John Lewis, Larry Q. Nowels, Lant Pritchett, and John Sewell also contributed guidance or information. Additional assistance was provided by other individuals from the Department of State, Department of Defense, Agency for International Development, Department of the Treasury, World Bank, International Monetary Fund, U.N. Secretariat, U.N. High Commissioner for Refugees, UNICEF, World Health Organization, Population Action International, U.S. Committee for Refugees, World Resources Institute, Bread for the World, and Carter Center of Emory University. However, responsibility for the study naturally remains with the author and with the Congressional Budget Office.
Paul L. Houts edited the study, and Christian Spoor provided editorial
assistance. Judith Cromwell aided in the production of tables. Kathryn
Quattrone and Martina Wojak-Piotrow prepared the study for publication.
Robert D. Reischauer
Director
April 1994
SUMMARY
ONE - INTRODUCTION
TWO - SECURITY-RELATED ASSISTANCE FOR BUILDING DEMOCRACY: AID PROGRAMS FOR THE COUNTRIES OF THE FORMER SOVIET UNION
THREE - SECURITY-RELATED ASSISTANCE FOR PROMOTING PEACE: U.N. PEACEKEEPING AND RELATED ACTIVITIES
FOUR - SECURITY-RELATED ASSISTANCE AND THE LONGER-TERM FOUNDATIONS OF PEACE: ARMS CONTROL AND PEACE FUNDS
FIVE - DEVELOPMENT ASSISTANCE TO IMPROVE DEMOGRAPHIC TRENDS, EMPLOYMENT, AND POLITICAL STABILITY
SIX - REALLOCATING WITHIN THE FOREIGN POLICY BUDGET: PAYING THE BILL FOR NEW AID INITIATIVES
APPENDIXES
A - Using Aid to Enhance Security During the Cold War
B - Aid, Trade, and the U.S. Economy
C - How to Pay for U.N. Peacekeeping: the Concept of an Escrow Account
D - Development Assistance and an Expanded Agenda for the Environment
| TABLES | |
| S-1. | Possible Increases in U.S. Foreign Assistance |
| 1. | U.S. Foreign Policy Budget |
| 2. | A Comparison of the Aid Spending of Donor Countries, 1990-1991 |
| 3. | U.S. Funding for Security-Related Assistance, 1994 |
| 4. | U.S. Bilateral Assistance and Credits for the States of the Former Soviet Union |
| 5. | U.S. Grant Assistance for the States of the Former Soviet Union |
| 6. | U.S. Pledges of Assistance for Belarus, Kazakhstan, Russia, and Ukraine Under the Cooperative Threat Reduction Program |
| 7. | U.S. Costs of Illustrative Aid Initiative for the States of the Former Soviet Union |
| 8. | Current Peacekeeping Operations of the United Nations |
| 9. | U.S. Costs of Illustrative Aid Initiative for U.N. Peacekeeping and Related Activities |
| 10. | Number of Nuclear Sites Under IAEA Safeguards or Containing Safeguarded Material on December 31, 1991 |
| 11. | Verification Activities Under International Atomic Energy Agency Safeguard Agreements, 1991 |
| 12. | U.S. Costs of Illustrative Aid Initiative for Arms Control |
| 13. | U.S. Funding for Development Assistance, 1994 |
| 14. | Population Indicators for Selected Countries |
| 15. | U.S. Costs of Illustrative Aid Initiative for Health, Basic Human Needs, and Family Planning |
| 16. | Long-Term Credits of U.S. Government Agencies to Sub-Saharan African Countries |
| 17. | Summary of Possible Increases in U.S. Foreign Assistance |
| 18. | U.S. Military Forces |
| FIGURES | |
| S-1. | U.S. Foreign Policy Budget, 1962-1994 |
| 1. | U.S. Foreign Policy Outlays, 1946-1994 |
| 2. | U.S. Foreign Policy Budget, 1962-1994 |
| 3. | U.S. Spending for U.N. Peacekeeping Assessments, 1970-1994 |
| 4. | U.S. Aid to Israel, 1970-1992 |
| 5. | U.S. Aid to Egypt, 1970-1992 |
| A-1. | U.S. Overseas Loans and Grants, 1946-1992 |
| BOXES | |
| 1. | Defining Foreign Aid |
| 2. | The Clinton Administration's Proposal for a New Foreign Assistance Act |
| 3. | The "Third World" |
| 4. | The Donor and Recipient Communities |
| 5. | Strategy, Force Planning, and Simultaneous Regional Wars |
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