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Diplomacy in Action

Related Appropriations


FY 2007 Budget in Brief
Bureau of Resource Management
February 6, 2006
Report
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Resource Summary

($ in thousands)

Appropriations

FY 2005

Actual

FY 2006

Estimate

FY 2007

Request

Increase/

Decrease

The Asia Foundation

12,826

13,821

10,000

(3,821)

National Endowment for Democracy

59,199

74,042

80,000

5,958

East-West Center

19,240

18,994

12,000

(6,994)

Center for Middle Eastern-Western Dialogue - Trust Fund

6,660

4,936

0

(4,936)

Center for Middle Eastern-Western Dialogue - Program

622

740

750

10

Eisenhower Exchange Fellowship Program

493

494

500

6

Israeli Arab Scholarship Program

370

370

375

5

Total, Related Appropriations

99,410

113,397

103,625

(9,772)



All FY 2005 Actuals reflect the rescission of 0.54% to Commerce, Justice, State appropriated accounts and the general rescission of 0.80% provided through the Consolidated Appropriations Act, 2005 (P.L. 108-447).

FY 2006 Estimate reflects the rescission of 0.28% provided through the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108) and the general rescission of 1.0% provided through the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (P.L. 109-148).



THE ASIA FOUNDATION

Resource Summary
($ in thousands)


Activities

FY 2005

Actual

FY 2006

Estimate

FY 2007

Request

Increase/

Decrease

Operating Activity Expenses

1,575

1,698

1,228

(470)

Program Grants and Services

11,251

12,123

8,772

(3,351)

Appropriation Total

12,826

13,821

10,000

(3,821)



FY 2005 Actual reflects the rescission of 0.54% to Commerce, Justice, State appropriated accounts and the general rescission of 0.80% provided through the Consolidated Appropriations Act, 2005 (P.L. 108-447).

FY 2006 Estimate reflects the rescission of 0.28% provided through the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108) and the general rescission of 1.0% provided through the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (P.L. 109-148).


Explanation of Request

The FY 2007 request will provide funding for The Asia Foundation (TAF) at $10,000,000.

This level of funding will support programs that focus on conflict resolution and counter extremism; improve governance practices and the rule of law; strengthen democratic institutions including the protection of human rights; increase citizen participation in public policy; expand women's rights and anti-trafficking efforts; increase economic opportunity through small business development; and develop stronger, more effective open market economies. The FY 2007 request will promote political moderation and tolerance within Muslim minority and majority countries in Asia in unstable countries such as Afghanistan and Pakistan, and less stable countries such as Nepal and Cambodia. TAF will continue working to promote free and fair elections, constitutional development, human rights, education and local government reform. Other programs will continue to develop democratic institutions to increase the pace of legal reform in China, Vietnam, Indonesia and Thailand, including policy reforms to improve the investment environment, fight corruption and protect intellectual property.

TAF will continue to increase its private fund-raising efforts and expects to raise $4 million in private funds during FY 2007. TAF will continue to receive in-kind contributions, notably donated books and journals from American publishers which are distributed through TAF's Books for Asia program and reach 5,000 institutions in the region. Since 1954, TAF has distributed over 40 million books to Asian institutions. The request for operating activity expenses reflects the current indirect cost rate negotiated between the Department of State and TAF, which is 14% of direct costs.

Program Description

TAF programs complement official efforts to advance U.S. interests in Asia. As a non-governmental grant-making organization, TAF is a distinctive American on-the-ground presence in Asia. Few other nongovernmental organizations can claim TAF's capacity to deliver effective programs and build local capacity in the government, civil society and private sectors.

TAF delivers concrete programs at both the grass roots and policy levels, capitalizing on its longstanding presence and on an essential combination of strengths, including a depth of understanding and sensitivity to local and regional political and economic developments; commitment to results; widespread governmental and non-governmental contacts; the ability to react quickly to identify and develop timely program responses to key foreign policy issues and opportunities; and proven capacity as a program manager and grant maker. TAF's ability to work flexibly, often at break neck speed, such as during the Emergency and Constitutional Loya Jirgas and elections in Afghanistan, is highly valued by the Department of State. TAF funds programs in front line states such as Indonesia, Afghanistan and Pakistan, and in countries where on-the-ground programs make a significant tangible contribution to American public diplomacy through books, exchanges and the generation of good will that benefit the lives of people in Asia.

TAF plays an important role in helping the U.S. Government attain its strategic goals in Asia. TAF's reputation enables it to undertake programs difficult for the U.S. Government to address directly (including issues related to religion and ethnicity), to take risks to promote reform, and respond rapidly in troubled areas with sensitivity and an effectiveness made possible through experience and local relationships. TAF operates in countries of high priority to the U.S., but where the U.S. does not maintain a development presence, such as China and the Korean Peninsula, and has been encouraged by the Department of State to be an early bridge to countries emerging from isolation or authoritarian rule, as in the case of North Korea, and in earlier times, Mongolia, Vietnam and China. TAF's programs are directly linked to U.S. Government goals and objectives, including the number one priority of combating terrorism and dealing with its root causes.

TAF achievements include: introduction of civic education curricula to promote democratic principles, moderate Islam, and tolerance within Indonesia's 46 State Islamic Institutes and 142 private Islamic colleges, reaching 10% of all tertiary students in the country and curriculum reform for over 400 Islamic primary schools reaching 120,000 students; the establishment of the only center for progressive Muslims in Southeast Asia, The International Center for Islam and Pluralism; provision of civic education and operations support for the registration of voters and polling for presidential elections in Afghanistan; training in China on legal rights for thousands of migrant women workers; support for anti-trafficking NGOs in Cambodia and Thailand; support for 130,000 domestic election monitors and voter education programs during the 2004 Indonesian presidential and parliamentary election, mobilizing Muslim, Catholic and other nongovernmental organizations, and reaching over 110 million voters; enhancing access to justice through the Community Mediation Boards in Sri Lanka, which handle more than 100,000 cases per year; development of a model for mediation of conflict at the village level now serving 11 districts in Nepal; support for monitors of the peace process between the government and the Moro Islamic Liberation Front (MILF) in the Philippines; and legal reform and parliamentary development in East Timor.

TAF responded immediately to the tsunami crisis by providing support to one of Indonesia's mass-based Muslim organizations, Muhammadiyah (which has extensive networks in Aceh), to place additional health and social service experts in Aceh, re-establish radio and communications networks and by providing faith-based organizations and the Rotary Club in Sri Lanka with funding to help in the distribution of critical relief supplies in tsunami-hit eastern Sri Lanka.

The Asia Foundation is primarily a grant-making organization with 17 offices in Asia. Through support for innovative program activities, education, public policy dialogue, research, human resource development, technical assistance, and institutional strengthening, TAF contributes to U.S. and Asian interests by:

 • strengthening key democratic institutions such as legislatures and courts, professional organizations, citizen advocacy and human rights groups; promoting religious tolerance and conflict resolution; and building constituencies to promote legal reform;
 • protecting the rights of women, and countering domestic violence and trafficking of women and children;
 • supporting open market economies and liberalized trade and investment policies, and strengthening key financial institutions;
 • promoting leadership development through professional training and study tours for staff members of grantee institutions; and facilitating U.S.-Asian dialogue on political, economic, and security issues affecting U.S. interests in the region; and
 • managing the Books for Asia program, which annually distributes over half a million donated American books, and journals throughout Asia and supporting education reform.

Benefits

The Asia Foundation is uniquely positioned to address immediate needs in Asia through programs that advance priority U.S. interests. With its longstanding field presence, TAF has a depth of experience, rapid response, and grant making capacity that makes it an important, reliable resource that can identify critical needs, develop creative approaches, and manage results-oriented programs in Asia. TAF's flexible grant making helps develop new Asian leadership and institutional capacity. TAF's presence in Asia and its nongovernmental status help provide a buffer against controversy. TAF is able to undertake programs that are difficult for the U.S. government to implement directly, including programs that focus on issues such as religion, ethnicity or human rights. TAF programs also contribute to American public diplomacy through books, exchanges and the generation of good will from on-the-ground projects that improve the lives of people in Asia.

NATIONAL ENDOWMENT FOR DEMOCRACY

Resource Summary
($ in thousands)


FY 2005

Actual

FY 2006

Estimate

FY 2007

Request

Increase/

Decrease

Appropriation Total

59,199

74,042

80,000

5,958



FY 2005 Actual reflects the rescission of 0.54% to Commerce, Justice, State appropriated accounts and the general rescission of 0.80% provided through the Consolidated Appropriations Act, 2005 (P.L. 108-447).

FY 2006 Estimate reflects the rescission of 0.28% provided through the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108) and the general rescission of 1.0% provided through the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (P.L. 109-148).


Explanation of Request

The FY 2007 request of $80,000,000 funds the National Endowment for Democracy (NED). This level of funding will support programs in the Middle East, Africa, Asia, Eurasia, Central and Eastern Europe, and Latin America, as well as multi-regional programs. NED's programs have the following objectives:

 • helping to support countries in transition to more open democratic systems, placing special emphasis on the defense of human rights and the provision of access to independent information;
 • promoting democratization in semi-authoritarian countries by monitoring the conduct of elections, expanding constitutional, legal, and political space for civil society, NGOs, and political party development, establishing links between civil society and political parties, and encouraging cross-border assistance within regions;
 • aiding the practice of democracy in countries with significant Muslim populations by promoting good governance and economic reform, strengthening political parties, encouraging women's participation, and supporting grassroots organizations that defend human rights and promote democratic values;
 • assisting the consolidation of new democracies, paying close attention to the problems of governance by increasing both accountability and broad-based participation;
 • helping to heal war-torn societies, providing critically needed support to groups in civil society that defend human rights, educate about democracy, and provide training in conflict resolution;
 • providing democratic activists with access to new information and communication technologies; and
 • developing strong regional networks that bring together democratic leaders in Africa, Latin America, the Middle East, Asia, Central and Eastern Europe, and Eurasia for mutual collaboration and assistance.

Program Description

The National Endowment for Democracy (NED) is a private, non-profit organization created in 1983 to strengthen democratic institutions around the world through non-governmental efforts. An independent, bi-partisan board of directors governs NED. With its annual appropriation, NED makes hundreds of grants each year to support pro-democracy groups in Africa, Asia, Central and Eastern Europe, Latin America, the Middle East, and Eurasia. NED's mission is to support peaceful and stable transitions to more open political and economic systems characterized by effective governance and legal systems, an engaged and responsible civil society, and open markets.

Programs in the areas of labor, open markets, and political party development are funded through four core institutes: the American Center for International Labor Solidarity (ACILS), the Center for International Private Enterprise (CIPE), the International Republican Institute (IRI), and the National Democratic Institute (NDI). Also, NED annually funds hundreds of programs in the areas of human rights, civic education, independent media, rule of law, strengthening non-governmental organizations, and other aspects of democratic development.

Benefits

NED's programs advance long-term U.S. interests and address immediate needs in strengthening democracy, human rights, and the rule of law. Promoting democracy through the National Endowment for Democracy is vital to U.S. national security since democracies typically do not sponsor terrorism, proliferate weapons of mass destruction, create destabilizing flows of refugees, or go to war with one another. Terrorism feeds off tyranny by finding recruits among the politically repressed and sanctuary from states that use terror against their own people. NED's program can begin to sever this link and advance the values of democracy, individual rights, and cultural pluralism in the world. Additionally, NED's support for free market reforms encourages regional trading opportunities and helps foster economic growth.

PART / Program Evaluation

At the beginning of each grant-making year, a Planning Document is developed by NED staff on a region-by-region basis, working with designated Board experts and NED's core institutes. The document sets forth priority programmatic areas, countries and regions, and establishes targets for the entire budget available for grants. The Board reviews the document at the beginning of the year, and during the year monitors how well annual program objectives are being met.

NED awards more than 900 grants annually. Each proposed project must contain an evaluation plan before it can be approved by the Board. In addition, no grant can be renewed before an assessment of its previous year's activities has been presented to the Board.

Quantitative measurements are more easily obtained than qualitative by monitoring the frequency of specific activities involved in the project, e.g., the number of direct participants and the quantity of written, video, or audio materials produced, depending on the nature of the region. Qualitative measurements are ascertained through review of program products by experts, media reporting or commentary generated by program activities, questionnaires filled out by participants, or evidence that, for example, specific democratic reforms have taken place or are being considered in the target country, or that participation in civic organizations has increased as a result of program activities. Under some circumstances, when project activities are undertaken in a particularly hostile environment, the fact that an organization has been able to carry out its programs is evidence that a particular grant has been effective. The progress of grants is monitored through self-evaluations by grantees, on-site visits by NED program officers, and independent evaluations of selected projects by outside experts.


EAST-WEST CENTER

Resource Summary
($ in thousands)


FY 2005

Actual

FY 2006

Estimate

FY 2007

Request

Increase/

Decrease

Appropriation Total

19,240

18,994

12,000

(6,994)



FY 2005 Actual reflects the rescission of 0.54% to Commerce, Justice, State appropriated accounts and the general rescission of 0.80% provided through the Consolidated Appropriations Act, 2005 (P.L. 108-447).

FY 2006 Estimate reflects the rescission of 0.28% provided through the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108) and the general rescission of 1.0% provided through the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (P.L. 109-148).


Explanation of Request

The FY 2007 request of $12,000,000 funds the Center for Cultural and Technical Interchange Between East and West (the East-West Center).

Funding supports programs designed to:

 • contribute to a peaceful, prosperous, and just Asia Pacific community by serving as a vigorous hub for cooperative research, education, and dialogue on critical issues of common concern to the Asia Pacific region and the United States; and
 • prepare Americans for an era in which the Asia Pacific region is increasingly important to the United States.

Program Description

Congress established the East-West Center (EWC) in Hawaii in 1960 as a national education and research organization to promote U.S.-Asia Pacific relations and understanding through cooperative study, training, and research. The Center's program is directed toward a region with more than 50 percent of the world's population.

The EWC is a public, non-profit institution chartered by the State of Hawaii with an 18-member international board of governors. Some 1,500 scholars, government and business leaders, educators, journalists, and other professionals from throughout the region work through the EWC annually. By bringing such individuals together for collaborative projects, the EWC projects U.S. values, ideas, and interests into the region. The EWC is positioning itself as a public-private partnership activity. Programs include:

 • Research - The Research Program covers four broad areas of study: politics, governance and security; economics; environmental change, vulnerability and governance; and population and health. Collaborative research at the Center contributes to: (1) the strengthening of regional, sub-regional and national institutions of governance; (2) the promotion of mutually beneficial growth that is equitable and sustainable; and (3) the management and resolution of critical regional problems as well as significant issues of common concern at the national level.
 • Education, Training and Seminars - The EWC offers a wide range of educational opportunities for students and professionals specializing in Asia and the Pacific. These include support for undergraduate and graduate study, visiting fellowships, and special programs for Pacific Islanders and East Timorese, among others. The Asian Studies Development Program (ASDP) has developed relationships with approximately 420 colleges and universities in reaching American college students to expand their knowledge about Asia and the Pacific. Through its Seminar Program, the Center seeks to become a major venue for productive policy and results-oriented seminars on issues relating to Asia Pacific community building. Seminars for political, corporate and academic leaders in several areas of thematic emphasis are offered throughout the year.

Benefits

The EWC advances long-term U.S. interests and addresses multilateral needs in Asia and the Pacific, including fostering mutual understanding, strengthening democracy and human rights, and encouraging global growth and security. Presidents, prime ministers, ambassadors, scholars, business executives, and journalists use the EWC as a forum to advance international cooperation. The EWC is one of the most active U.S. organizations engaged in the Pacific Islands region, bringing heads of government annually to the U.S. Among its resources is a network of more than 50,000 alumni around the world.

The EWC has an established methodology for cooperative, group-oriented public diplomacy programs that is quite distinctive from the more typical exchanges that are focused on individuals. The group activities also generate highly motivated alumni. The EWC uses its 40 alumni chapters for programming and enhancing its mission.

Private agencies, individuals, corporations, and foreign governments provide additional support. The EWC expects to generate additional support of $17 million in FY 2006 and $12 million in FY 2007.


CENTER FOR MIDDLE EASTERN-WESTERN DIALOGUE

Resource Summary
($ in thousands)


FY 2005

Actual

FY 2006

Estimate

FY 2007

Request

Increase/

Decrease

Appropriation Total

622

740

750

10



FY 2005 Actual reflects the rescission of 0.54% to Commerce, Justice, State appropriated accounts and the general rescission of 0.80% provided through the Consolidated Appropriations Act, 2005 (P.L. 108-447).

FY 2006 Estimate reflects the rescission of 0.28% provided through the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108) and the general rescission of 1.0% provided through the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (P.L. 109-148).


Explanation of Request

The FY 2007 request seeks appropriation authority to spend $750,000 in estimated interest and earnings of the Center for Middle Eastern-Western Dialogue Trust Fund. These funds will be used for programming activities and conferences that the Center will convene.

Program Description

The Consolidated Appropriations Act, 2004 (P.L. 108-199) created the Center for Middle Eastern-Western Dialogue Trust Fund to support the operations of the Center on an annual basis. The Council of American Overseas Research Centers (CAORC), in collaboration with the Department of State, is overseeing development of the Center.

The purpose of the Center is to develop programs of cooperative study, training, and research for students and scholars to exchange views and ideas. The Center will focus on development of region-based groups that will conduct research on topics of contemporary importance to build international dialogue and understanding. It will also convene conferences on topics related to critical issues such as Muslim youth and the media, regional cooperation in areas like the Caspian Basin and Afghanistan-Pakistan, and portrayal of the Israel-Palestine conflict by regional and worldwide media.

The Center's Steering Committee is chaired by CAORC and composed of experts from universities, NGOs, and the Department of State. The Committee is identifying potential partners in the U.S. and in the broader Middle East and North Africa region and making recommendations for program activities and institutional management of the Center. CAORC is serving as the liaison with concerned Federal and private agencies and will monitor progress and report annually to Congress on their conferences and other activities.

Benefits

The goal of the Center is to promote dialogue on key issues, the growth of civil society and democratic institutions, and peaceful resolution of differences. Toward this goal, the Center will further scholarship and implement programs to encourage mutual understanding between the United States and Europe and the people of Southeast Europe, the Near and Middle East, Central Asia, and North Africa.

EISENHOWER EXCHANGE FELLOWSHIP PROGRAM

Resource Summary
($ in thousands)


FY 2005

Actual

FY 2006

Estimate

FY 2007

Request

Increase/

Decrease

Appropriation Total

493

494

500

6



FY 2005 Actual reflects the rescission of .54% to Commerce, Justice, State appropriated accounts and the general rescission of .80% provided through the Consolidated Appropriations Act, 2004 (P.L. 108-447).

FY 2006 Estimate reflects the rescission of 0.28% provided through the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108) and the general rescission of 1.0% provided through the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (P.L. 109-148).


Explanation of Request

The FY 2007 request seeks appropriation authority to spend $500,000 in estimated interest earnings of the Eisenhower Exchange Fellowship Program Trust Fund. The funding will be applied to:
 • providing learning and networking opportunities for mid-career international and U.S. leaders in preparation for increasingly senior positions in government, business and the NGO sectors;
 • exposing these emerging leaders to best practices in building democratic institutions and free markets; and
 • advancing peace through the increased international dialogue, understanding, and collaboration which results from the fellowships and from an active global alumni leadership network.

Program Description

The Eisenhower Exchange Fellowship Program (EEF) promotes international understanding and economic productivity through the exchange of information, ideas, and perspectives among emerging leaders throughout the world.

EEF was created in 1953 to honor President Eisenhower. The Eisenhower Exchange Fellowship Program Act of 1990 (P.L. 101-454) authorized a permanent endowment for the program and established a trust fund for this purpose.

The 1992 Department of State and Related Agencies Appropriations Act provided $5 million to establish a permanent endowment for the Program, and appropriated the interest and earnings in the Fund to Eisenhower Exchanges Fellowships, Inc. The 1995 Department of State and Related Agencies Appropriations Act made an additional payment of $2.5 million to the endowment.

The program brings outstanding professionals who are rising leaders in their countries to the United States and sends American counterparts abroad with a custom-designed program for each participant. EEF consists of these major components:
 • Multi-Nation Program (MNP) - Provides two-month U.S. fellowships for an Eisenhower Fellow from each of 24 to 27 countries;
 • Single Nation or Single Area Program (SNP) - Provides two-month U.S. fellowships for 15 to 25 Fellows representing a range of professions from a single country or area;
 • USA Program (USA) - Sends 10 to 15 Americans abroad, for one to three months, to countries where their fields can be enriched by persons, organizations, and institutions encountered there; and
 • Eisenhower Fellowships Network (EFN) - Links alumni Fellows worldwide, enabling Fellows to collaborate on projects, extend and strengthen relationships, and develop international links. More than 1,600 men and women from over 100 countries have joined the ranks of Eisenhower Fellows since 1953, and the vast majority remain actively engaged in the Eisenhower Fellowships Network.

Benefits

EEF exchanges strengthen democratic development, open markets and global understanding by creating opportunities for emerging U.S. and foreign leaders to experience each other's societies and cultures directly and to work together on an ongoing basis in the interests of international peace and prosperity.



ISRAELI ARAB SCHOLARSHIP PROGRAM

Resource Summary
($ in thousands)


FY 2005

Actual

FY 2006

Estimate

FY 2007

Request

Increase/

Decrease

Appropriation Total

370

370

375

5



FY 2005 Actual reflects the rescission of 0.54% to Commerce, Justice and State Appropriated accounts and the general rescission of 0.80% provided through the Consolidated Appropriations Act, 2005, (P.L. 108-447).

FY 2006 Estimate reflects the rescission of 0.28% provided through the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108) and the general rescission of 1.0% provided through the Emergency Supplemental Appropriations Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006 (P.L. 109-148).


Explanation of Request

The FY 2007 request seeks appropriation authority to spend $375,000 in estimated interest earnings of the Israeli Arab Scholarship Fund. The funding will be applied to:
 • increasing educational opportunities for Israeli Arab students to study and conduct research in the United States and
 • advancing peace through international understanding.

Program Description

The Israeli Arab Scholarship Program (IASP) fosters mutual understanding between Arab citizens of Israel and the United States through international exchange and training activities.

The Israeli Arab Scholarship Program funds scholarships for Israeli Arabs to attend institutions of higher education in the United States. This program is authorized by Section 214 of the Foreign Relations Authorization Act, Fiscal Years 1992 and 1993 (P.L. 102-138). A permanent endowment of $4,978,500 was established in 1992 with funds made available under Section 556(b) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act of 1990 (as amended by Section 551 of the Foreign Operations, Export Financing, and Related Programs Appropriation Act, 1991).

Benefits

The income generated by this endowment provides scholarships for Israeli Arab students to study in the United States. IASP exchanges strengthen international peace and create opportunities for understanding each other's societies and cultures directly.



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