OVERVIEW OF THE DEPARTMENT OF STATE
Diplomacy is an instrument of power, essential for maintaining effective international relationships, and a principal means through which the United States defends its interests, responds to crises and achieves its international goals. The Department of State is the lead United States foreign affairs agency for the conduct of American diplomacy. It advances U.S. interests in shaping a freer, more secure and prosperous world through formulating, representing and implementing U.S. foreign policy.
The Constitution vests the President with responsibility for the conduct of our nation's foreign policy. The Department was established in 1789 to advise the President on the formulation and execution of foreign affairs. The Secretary of State, the ranking member of the Cabinet and fourth in line of presidential succession, is the President's principal advisor on foreign policy and the individual chiefly responsible for U.S. representation abroad. The Secretary is aided by a Deputy Secretary and six Under Secretaries who serve as the Department's corporate board and specialize in the following areas: political affairs; economic, business and agricultural affairs; arms control and international security; global affairs; public diplomacy and public affairs; and management.
The Department's foreign policy mission is conducted by approximately 21,000 employees in both the Civil Service and the Foreign Service, including Foreign Service Nationals, in the 162 countries where the United States is represented. We also operate one of our largest Diplomatic Missions in New York, the United States Mission to the United Nations. In addition, the Department operates a national passport and visa center located in Portsmouth, New Hampshire, 13 passport agencies, 5 offices that provide logistics support for overseas operations, 22 security offices, and 3 financial services centers located overseas in Paris and Bangkok, and domestically in Charleston, South Carolina.
Within the Department's headquarters in Washington, D.C., the mission is coordinated and managed through six regional Bureaus, each with responsibility for a specific geographic region of the world. The regional Bureaus and the overseas posts are supported by domestic offices that provide program management and administrative expertise in dealing with matters such as economics, intelligence and human rights, as well as finance, administration, personnel, training, medical services and security programs.
In each Embassy, the Chief of Mission (usually an Ambassador), is responsible for the coordination and management of all U.S. Government functions in the host country. Each Ambassador is appointed by the President, confirmed by the Senate and reports to the President though the Secretary.
THE DEPARTMENT'S MISSION
U.S. diplomacy is an instrument of power, essential for maintaining effective international relationships, and a principal means through which the United States defends its interests, responds to crises and achieves its international goals. The Department of State is the lead institution for the conduct of American diplomacy, a mission based on the role of the Secretary of State as the President's principal foreign policy adviser.
In order to carry out U.S. foreign policy at home and abroad, the Department of State:
INTRODUCTION TO THE FISCAL YEAR 2000 PROGRAM PERFORMANCE REPORT
The Department of State FY 2000 Annual Program Performance Report (the Report) documents the Department's fulfillment of performance goals for Fiscal Year (FY) 2000, as set out in its FY 1999-FY 2000 Performance Plan. These documents describe actions taken during the previous administration. Issuance of this report satisfies a legislative requirement of the Government Performance and Results Act of 1993 (GPRA). The Report comes in three parts. The first section, in narrative form, highlights foreign policy accomplishments as they relate to the Department's strategic and performance goals. It also addresses management challenges cited by the Office of Inspector General (OIG) and General Accounting Office (GAO). The second portion measures progress toward the achievement of each performance goal listed for FY 2000, using the indicators, baselines and targets presented in the FY 1999-FY 2000 Performance Plan. The final part, issued as an annex, is the annual performance report for the OIG, which was prepared independently. No non-federal parties contributed to the preparation of the Report.
The Report is organized according to the seven National Interests identified in the Department's Strategic Plan and the sixteen Strategic Goals that flow from them. It also includes a section on Mutual Understanding, based on the input of the Department's Bureaus that succeeded the former United States Information Agency (USIA), which was integrated into State on October 1, 1999. In addition, there is a set of Diplomatic Readiness Goals, pertaining to human resources, information and infrastructure and operations.
The Report is based on the same two-year Performance Plan as the FY 1999 Performance Report. Its illustrative performance goals in the first annex remain the same as those in the FY 1999 Report, based on a legislative requirement to report actual program performance compared with the goals expressed in the associated Performance Plan. Although additional progress on those goals was made during FY 2000, the Department recognizes that providing a single performance goal for each strategic goal and only a few performance goals for each diplomatic readiness area offers a very limited view of the breadth of services the Department provides. To present a more comprehensive perspective of State's achievements during FY 2000, the Report's main narrative portion consists of input from each of the Department's bureaus and numerous overseas posts.
Three program evaluations were conducted by the Bureau of Educational and Cultural Affairs during the fiscal year: an Arrival Host Family Study, an evaluation of the Hubert H. Humphrey Fellowship Program, and a study of the impact of the Summer/Winter Institute experience. These are summarized later in this report.
Additional information on State, including the International Affairs Strategic Plan (February 1999 revision), the Department's Strategic Plan (September 2000 revision), FY 1999-FY 2000 Performance Plan, and FY 1999 Performance Report, is available on the Internet at www.state.gov.
OVERVIEW OF THE DEPARTMENT'S PERFORMANCE DURING FY 2000
The following discussion presents the program accomplishments achieved in FY 2000 within the framework of the Department's Strategic Plan and Performance Plan. To facilitate understanding of the mission of the Department, the seven National Interest Statements explain why the Department pursues the strategic and performance goals on behalf of the American people. Within each National Interest, the Strategic and Diplomatic Readiness Goals present what the Department sought to accomplish during the previous administration.
NATIONAL INTEREST: National Security
Strategic Goal: Regional Security
Ensure that local and regional instabilities do not threaten the security and well-being of the United States or its allies.
Regional stability, achieved through diplomatic leadership, a strong military and effective intelligence, is fundamental to U.S. national security. Strengthening national security is a prerequisite to all other U.S. goals.
The President's national security strategy is based on diplomatic leadership, a strong military and effective intelligence. Traditional diplomacy through establishment of alliances and country-to-country relations help to achieve national security, but U.S. interests may require more aggressive action to prevent, manage, and resolve ethnic conflicts, civil wars, territorial disputes and humanitarian disasters anywhere in the world. In some cases, the U.S. may be the only nation with the ability, need and responsibility to respond without the support of other countries.
The strategy for achieving this goal is to maintain effective working relationships with leading regional states utilizing defensive cooperation through alliances, military assistance and defense trade controls to help prevent, manage and diffuse regional conflicts. To decrease the potential of future conflicts, the United States may seek imposition of multilateral sanctions on violators of international norms of behavior. Building a consensus among the foreign community that the U.S. is an important participant in the international peacekeeping process is also essential for resolving regional conflicts. Efforts to increase global economic growth and stability also play a role in fostering regional security.
Supported NATO Efforts
The Department supported U.S. interests in NATO by promoting new members, cooperating through Partnership for Peace and improving NATO-Russian relations. NATO has successfully integrated three new members, Poland, Hungary and the Czech Republic. This has the effect of erasing Cold War dividing lines and advancing the Department's goal of a whole and free Europe.
For those states which have not attained or sought NATO membership, the Partnership for Peace and the Euro-Atlantic Partnership Council have provided multiple avenues for practical political-military cooperation and dialogue and have contributed enormously to Euro-Atlantic security. NATO has made significant strides in building a strong, stable and enduring partnership with Russia through the framework of the Permanent Joint Council. Although initially opposed to NATO involvement in Kosovo, Russia continued to cooperate with NATO in maintaining peace in Bosnia and Kosovo. In addition, the scope of consultations between Russia and NATO has expanded to include theater missile defense, environmental protection, scientific and defense policy issues.
The Department sent 16 speakers to address issues ranging from the European Security Defense Identity to NATO after Kosovo. Ironically it may have been a target-of-opportunity speaker program on political party organization with youth leaders from right and left-center parties in Moscow that had the greatest impact on NATO-Russia relations - this program made it possible for Embassy Moscow to recruit participants for NATO tours during the NATO Information Office's long closure throughout FY-2000. Some of the participants in the speaker program and subsequent NATO tours have since formed a Russian NGO dedicated to promoting better understanding of NATO's aims among Russian legislators and the public.
The Balkans: Continued Peacekeeping Efforts
Bosnia and Herzegovina continued to make progress under the Dayton Accords. The NATO-led Stabilization Force reduced its manpower by one-third without a decline in public security. The number of minority refugees returning increased by two-thirds over the previous year, advancing the aim of reversing ethnic cleansing.
The Department sent 23 specialists on media management and journalism to Balkan countries to conduct short and long-term training programs with journalism institutions, NGOs, newspapers, and TV/radio stations. The two initial media specialist programs in Kosovo in FY-2000 have played a key role in the development and operation of Kosovalive, a vital independent news agency in Kosovo.
Northern Ireland: Good Friday Peace Agreement
While the primary responsibility for implementation of the Good Friday Accord (GFA) lies with the British and Irish governments and the parties to the agreement, active U.S. involvement and support has been critical to the success of the GFA. This year, GFA institutions, including North-South bodies, were established and became functional. In December, power devolved to the Northern Ireland Assembly. Further progress was made in May when the Irish Republican Army (IRA) stated it would put its arms "completely and verifiably" beyond use and an initial inspection of an IRA arms dump took place. In addition, a Police Bill was published by Parliament.
Middle East: Continued Peace Talks
Israeli and Palestinian representatives continued to meet to discuss a Framework Agreement for Permanent Status (FAPS). During the Camp David Peace Summit in July, Prime Minister Barak and PLO Chairman Arafat directly confronted and discussed the most difficult issues between them, including the status of Jerusalem and the right of return of Palestinian refugees. Despite marathon sessions and the achievement of understanding on certain issues, the summit ended without an agreement. However, progress was made in southern Lebanon, when Israeli troops were withdrawn, ending a 22-year occupation.
Payment of U.S. Arrears to the United Nations and Other International Organizations
Legislation was enacted on November 29, 1999, designed to enable payment of U.S. arrears to the United Nations and other international organizations. The payment plan under this so-called "Helms-Biden" provision authorizes the release of arrears funding in three tranches upon certification by the Administration to the Congress that specified reform benchmarks have been met. The full value of the arrears package is $926 million, comprised of $819 million in cash payments and a $107 million credit against amounts owed by the United Nations for peacekeeping support provided by the United States. In December 1999 the U.S. paid $100 million in arrears after certifying that Tranche One benchmarks were met. In December 2000 a key condition tied to the release of Tranche Two funding ($582 million) was met when the UNGA adopted a resolution lowering the ceiling (maximum) rate charged under the UN regular budget scale of assessments to 22 percent. While the maximum rate under the peacekeeping scale was also reduced, it did not reach the Helms-Biden target of 25 percent.
Strategic Goal: Weapons of Mass Destruction
Eliminate the threat to the United States and its allies from weapons of mass destruction (WMD) and destabilizing conventional arms.
The most direct and serious threat to U.S. security is the possibility of conflict involving weapons of mass destruction. Of greatest concern are rogue states - Iran, Iraq, Libya and North Korea - and terrorist organizations that seek to acquire these weapons and their delivery systems. Our arms control, nonproliferation, verification and export control policies play an essential role in countering that threat.
The Department led U.S. development of arms control and nonproliferation policies, and the negotiation and implementation of arms control and nonproliferation agreements to constrain and minimize the threat from the proliferation of nuclear, chemical and biological weapons, their missile delivery systems and destabilizing conventional arms. State also has lead responsibility for verifying compliance with arms control treaties and nonproliferation agreements.
In 2000, the Department slowed the access of countries of proliferation concern to materials and equipment that would aid a WMD or missile program, principally by denying requests to export sensitive U.S.-origin goods or technology, and interdicting sensitive foreign exports.
The Department managed and coordinated an export control cooperation and assistance program to help foreign governments (especially Russia, other NIS, and transit states in eastern and central Europe and the Mediterranean) to establish, enhance, and enforce world-class national export control systems, through training and provision of equipment.
The Indicators, Baselines and Targets from the 1999/2000 Department Performance Plan address only one part of the threat from weapons of mass destruction (WMD) - export controls in the NIS - and do not reflect the full range of the Department's concerns, activities, reorganization since that Plan was written, or the Administration's policies. The Department rectified this shortcoming in subsequent Performance Plans, which will address five strategies to achieve the WMD strategic goal: to deny materials and technology to the proliferators by containing Russia, China and North Korea as suppliers; to prevent and contain WMD programs in key countries and regions, including Iran, Iraq, Libya, North Korea and South Asia; to prevent the leakage of Cold-War-era nuclear materials and expertise, primarily from the former Soviet Union; to strengthen international nonproliferation agreements and norms; and to ensure that peaceful nuclear cooperation serves safety, environmental, and nonproliferation goals.
Secured Nuclear Material and Supported Export Control Systems in the NIS
Illicit technology transfers from the New Independent States (NIS) remain a major concern. Over the past year, with U.S. assistance, a number of countries, including Russia, have improved internal physical and legal controls designed to prevent illegal transfers of materials suitable for WMD. Licensing, tracking and enforcement procedures have been improved and programs to install effective radiation detection equipment at key border posts, including the Russian border, have been implemented to better control the flow of sensitive goods and technologies. However, much work remains to be done. During 2000, the Department obligated $7.325 million for export control assistance programs with Russia and $19.68 million for the remaining 11 NIS countries. The Department has achieved about half of its goal of having export controls in place in all NIS countries. During 2000, State reassessed and reorganized how export control assistance and sanctions are planned, programmed and executed in the NIS and other potential transit states to enhance our effectiveness.
The Department continued to support efforts by Russia and the other NIS to protect, store, and account for its nuclear materials. The Department funded civilian work for over 30,000 former Soviet WMD specialists through the International Science and Technology Centers in Moscow and Kiev, in order to reduce their incentives for assisting countries of concern. Some projects are now moving toward commercialization and permanent transition out of weapons work. In addition to Russia and Ukraine, the Centers engaged former WMD scientists in Kazakhstan, Uzbekistan, Kyrgyzstan, Georgia and Armenia.
Made Other Nonproliferation Progress
There was also progress in reinforcing the Nuclear Nonproliferation Treaty (NPT); in addressing missile technology transfer by China; in negotiating missile constraints and reinforcing nuclear constraints North Korea; in strengthening multilateral export control regimes; in improving national export control systems worldwide; and in continuing to impede the transfer of technical assistance and key items to nuclear, chemical and biological weapons programs or missile programs in Iran, North Korea, Libya, Syria, India and Pakistan. Specific achievements included maintenance of nuclear testing moratoria by India and Pakistan and of North Korea's missile flight testing moratorium; destruction of Slovakia's SS-23 missiles; closure of the Chernobyl reactor; and the first international agreement to harmonize export controls on any class of conventional weapons (man-portable air defense systems).
Significant challenges ahead include impeding Russian transfer of nuclear and missile technology and conventional weapons to Iran; addressing North Korea's nuclear and missile programs; tightening and re-targeting controls on transfers of arms, WMD and missile technology to Iraq; pressing China to abide by its missile technology export commitments; and making progress on our nonproliferation objectives as we build closer relations with India and Pakistan.
Promoted Arms Control Treaties
Arms control initiatives also played a critical role in responding to the potential WMD threat. The following summarizes the Department of State's work in key WMD arms control areas during 2000:
Arms Control Listserv
By the end of calendar year 2000, the Department's International Arms Control Listserv, which debuted in April 2000, was serving over 200 self-selecting subscribers around the world in countries such as Germany, Denmark, the Netherlands, the U.K., Japan, the Czech Republic, the Philippines, France, the Republic of Korea, Austria, Russia, Iran, Switzerland, Latvia, Israel, Belgium, Australia and Brazil. Subscribers include key opinion leaders in the field including Foreign and Defense Ministries, the German Council on Foreign Relations, the International Institute for Strategic Studies, the Stockholm International Peace and Research Institute, news organizations, embassies, weapons labs, premier educational institutions, military services, defense contractors and vendors, and web portals.
NATIONAL INTEREST: Economic Prosperity
Strategic Goal: Open Markets
Open world markets to increase trade and free the flow of goods, services, and capital.
The world economy continues to globalize, and U.S. economic prosperity is increasingly linked to international trade, investment, and capital flows.
America prospers when other countries prosper. In promoting open markets, increased exports, global economic growth, and growth in developing and transition economies, we are promoting American prosperity. Since the end of the Cold War, economic issues have become increasingly important in international affairs. Political stability is linked to long-term economic growth and prosperity. America's economy has become increasingly integrated with the global economy with the United States the largest exporter in the world of farm products, manufactured goods and services. Globalization offers vast new opportunities - biotechnology promises scientific and medical advances to feed the hungry and save millions of lives; the information revolution can promote faster economic growth and encourage individual freedom.
Expanded Trade Agreements
The Department of State played a critical role in successful trade initiatives during the year. The Department worked with other USG agencies and the Congress to secure passage of the African Growth and Opportunity Act (AGOA) and to implement its provisions, to negotiate a sound framework for Permanent Normal Trade Relations with China (PNTR), and to sign a bilateral trade agreement with Vietnam. The Asian Pacific Economic Cooperation (APEC) forum continues to promote open markets through out the region. In addition, we launched talks on a Free Trade Agreement of the Americas (FTAA).
The Department of State participated in intensified negotiations during the first quarter of the year to launch a new World Trade Organization (WTO) Round. A number of new countries have become WTO members: Georgia, Croatia, Lithuania, Albania and Moldova. Talks to bring China into the WTO entered their final phase with the passage of PNTR for China. Discussions continued with Russia, Saudi Arabia, and Ukraine on WTO entry and adoption of multilateral trade regime disciplines.
The Department developed and maintained the official USG. web site for the World Trade Organization ministerial meeting in Seattle. The page received almost 13,000 hits daily during the Seattle meeting, was used by more than 2,000 reporters at that meeting, and provided a key source of information to U.S. embassies. After the failure of the Seattle ministerial, the Department produced an electronic journal on "Crafting a Global Trade Strategy: The U.S. and the WTO," that sent a defining message worldwide that trade reform was not dead. The journal made clear that anti-globalists might have won a battle but not the war. Sure enough, global trade negotiations will resume at the ministerial level in 2001. That web site continues to promote trade liberalization.
A major element of opening world markets involves negotiating anti-bribery and anti-corruption regimes. During the year, the Department led the successful effort to bring the Organization of Economic Cooperation and Development (OECD) anti-bribery convention into force. The convention now has 25 signatories.
The Department marshaled scientific, economic and public diplomacy resources to promote a science-based and rules-based approach to the use of food and medicines with genetically modified organisms (GMOs). The biotechnology industry is potentially worth billions of dollars in U.S. exports - particularly corn, soybeans and cotton. U.S. exports of biotech corn, soybeans and cotton along were over $6 billion in 2000, and the potential for growth is substantial.
Department initiatives included an intensive public diplomacy strategy involving: 1) 60 experts who engaged public leaders in some 30 countries; 2) publications on food safety, the promise of biotechnology and food security, translated into numerous languages; a public diplomacy listserv and a comprehensive web site includes the very latest official material on biotechnology, as well as developments in international institutions, and links, whenever possible, to scientific developments.
Continued Focus on Air Service
Our market-oriented Open Skies initiative yielded agreements with 12 new countries, bringing the total number of agreements to 47 in 2000. This model is now the template for civil air agreements worldwide. In addition, the Department negotiated a liberal civilian air agreement with Chile, and an "all cargo" Open Skies accord with Australia.
The U.S. telecommunications sector continues to boom. The State Department marshaled USG efforts to win major advances for U.S. telecommunications interests overseas. The Department led the U.S. delegation to the 2000 World Radio Conference that put government and civilian users of radio spectrum in a strong position to provide cutting edge communications services. The Department also produced an electronic journal on the "Internationalization of E-Commerce" that examined ways the U.S. can help reduce the digital divide with developing economies, and reviewed such critical issues as a legal international framework for global economic transactions, internet fraud, and new global rules for e-commerce. Americans will soon enjoy coast-to-coast compact disc-quality radio programming as a result of Digital Audio Spectrum agreement with Mexico. American telecommunications and information technology equipment sales grew faster than projected.
Promoted Energy Trade
The State Department worked successfully with the Department of Energy and others to ensure a rational approach to the international supply of energy and to remove barriers to energy trade. The State Department is encouraging the private sector to develop new pipelines in the Caspian Basin, and helped open Venezuela's oil sector to over $5 billion in direct U.S. investment.
In addition, the Department worked with its partners and major oil producers to maintain adequate supplies and sufficient reserves. Since oil prices have risen and world oil supplies have tightened during the year, some countries have chosen to defer replenishing their stocks and/or defer the expense of constructing new oil storage facilities. Although the FY 2000 target, which was for the Czech Republic and Korea to meet the criteria of maintaining 90-day stock levels, was successful, several countries fell out of compliance with this goal as their stock levels dropped below the 90-day level. Consequently out of a total of 26 petroleum consumer countries, Belgium , Greece, Luxembourg, Spain, Turkey, Italy, and Portugal will become the focus of efforts, in conjunction with oil producers and IEA, in efforts to meet the desired emergency levels.
Strategic Goal: U.S. Exports
Expand U.S. exports to $1.2 trillion early in the 21st Century.
Globalization of the world economy makes trade increasingly important to U.S. prosperity and well being, particularly in the high technology sectors of the U.S. economy. In 1998, U.S. exports totaled $930 billion, accounting for 12% of our Gross Domestic Product or one in every seven American jobs.
As the world economy becomes more interdependent, trade will be increasingly important to the domestic economy and U.S. well-being, particularly in the high technology sectors of the U.S. economy. The 1997 National Export Strategy sets the goal of expanding U.S. exports of goods and services from $800 billion in 1995 to $1.2 trillion early in the 21st Century.
To accomplish this objective, the Department relies on a number of export promotion efforts such as advocacy, finance, and public diplomacy. This is especially effective in fast-growing, emerging markets such as Mexico, Brazil, China, Korea and India. In addition, export promotion can be increased by reaching out to small- and medium-sized firms to provide in-country assistance to encourage development of markets for their products overseas. Following are some of the more significant expansions of trade in 1999.
U.S. exports of goods rose from $686 billion in 1999 to $765 billion in 2000, an increase of 11.5 %. Service exports continued to grow faster than merchandise exports, continuing a trend that began in the mid-1980s. Total U.S. exports rose from $956 billion in 1999 to $1.068 trillion.
Promoted U.S. Interests
The Department of State advocated for dozens of U.S. companies, helping win billions of dollars in contracts that boost American jobs and prosperity. The Department provided over $400,000 in annual grants to over 80 smaller U.S. embassies and consulates to help develop U.S. export and investment opportunities in new markets. In addition, the Department of State led an intensified dialogue with the European Union that led to: agreements on data privacy worth billions of dollars; Mutual Recognition Agreements in sectors worth over $50 billion; and the enhancement of vibrant transatlantic dialogues with business, environmental, and consumer groups. In Morocco, Royal Air Maroc agreed to purchase 22 new Boeing aircraft valued at more than $1.1 billion while the United Arab Emirates to buy 80 F-16 fighters worth $6.4 billion.
A key aspect of U.S. export promotion strategy is negotiating bilateral investment treaties that reduce foreign barriers to U.S. goods, services and capital investment. During the year, the Department of State placed greater emphasis on securing Senate ratification of treaties already negotiated in order to gain maximum benefit for U.S. companies. The Senate ratified ten new investment treaties during this year. The Department led bilateral investment consultations to reduce investment barriers with eight countries and engaged in preparatory discussions with approximately 12 countries.
Strategic Goal: Global Growth and Stability
Increase global economic growth and stability.
Other countries and international financial institutions adopt policies designed to achieve global financial stability and restore economic growth.
Global macroeconomic conditions have an increasing impact on the ability of the United States to export and to sustain economic growth, while maintaining low domestic inflation and unemployment. Economic health is also a critical determinant of stability worldwide.
In order to increase global economic growth and stabilize economic crises when they occur, the Department encourages countries that have a major impact on the global economy to adopt market-oriented investment, legal, and regulatory reforms. Countries are also encouraged to establish public-private partnerships to take advantage of private sector expertise and demonstrate private sector commitment to a country or region. Also, strengthening the International Monetary Fund and other international financial institutions to achieve regional financial stability, a key ingredient to global economic growth, can facilitate reform.
The Department of State's leadership, in cooperation with Treasury, in international economic organizations has helped put good governance, environmental sustainability, poverty reduction, and social safety nets at the heart of development strategies. Economic growth and political stability are mutually reinforcing; the Department played a critical role in efforts to promote economic integration and recovery in Southeast Europe, Africa, and the Caribbean Basin.
The Departments of State and Treasury negotiated partial payment of arrears to International Financial Institutions. However, at the end of 2000, within the World Bank Group, U.S. arrears to the International Development Authority (IDA) were $32.1 million, and to
MIGA were $6 million. U.S. arrears to the Global Environmental Facility (GEF) were $204.2 million.
Strategic Goal: Economic Development
Promote broad-based growth in developing and transitional economies.
Developing and transitional economies make the necessary policy changes to create environments capable of supporting sustained economic growth.
Over the long term, the prosperity of America benefits as transitional and developing nations expand their economies and open their markets. Economic growth that reduces poverty and provides opportunity can further regional stability and complements the advance of democracy and rule of law. Sustainable development also ameliorates global problems such as high population growth, the spread of infectious diseases, and environmental degradation.
The Department seeks this goal primarily through promoting the movement away from centrally controlled economies to market-based economies and by helping to make free markets work in developing nations. This is achieved by pursuing sound macroeconomic policies, promotion of private sector trade and investment, and financial market reforms in developing and transitional countries. The Department assists developing economies through coordination of efforts with donor nations, International Financial Institutions and other multilateral organizations.
Strong economies contribute to regional stability and democracy, while paving the way for more open markets for U.S. exports. Working with International Financial Institutions and other USG agencies such as Treasury, EXIM and Commerce, the Department of State promotes policy reforms that lead to open markets and pluralistic societies in developing and transition economies. Particular emphasis was placed this year on four priority democracies - Nigeria, Indonesia, Ukraine, and Colombia.
Supported Development Banks
The Department works closely with multilateral and regional development banks to promote growth in developing economies. Adequate funding for these institutions is crucial to U.S. international economic and political interests. Unfortunately, congressional funding for Multilateral Development Banks (MDBs) did not materialize and USG arrears grew from $310 to $451 million. Arrears for regional development banks in 2000 was as follows: $98.8 million for the Inter-American Development Bank; $100 million for the Asian Development Bank; and $131 million for the African Development Bank.
Supported Eastern Europe
The Support for Eastern European Democracy (SEED) program assists countries in the region to continue their successful transition from communism to market democracies. In 2000, no countries graduated from the SEED program due to their failure to make sufficient advancements in economic, Rule of Law, and market-opening reforms. The United States is extensively engaged in urging the seven remain SEED countries to undertake the reforms necessary to qualify for graduation.
Support for Africa and the Caribbean
FY 2000 also saw the passage of the African Growth and Opportunity Act (AGOA) and enhancements to the Caribbean Basin Initiative (CBI) both of which foster sustainable development in their regions by increasing trade with the U.S. Implementation of AGOA was begun with the qualification in 2000 of 35 African countries as eligible to participate under the terms of the Act.
NATIONAL INTEREST: American Citizens and U.S. Borders
Strategic Goal: American Citizens
Enhance the ability of American citizens to travel and live abroad securely.
The millions of Americans who travel and reside abroad expect to do so with freedom and in reasonable safety. The United States cannot prevent the difficult and often tragic situations that arise. The U.S. can, however, help ensure that its citizens receive information, assistance, and protection.
Americans will continue to travel and reside abroad in large numbers. When they encounter emergencies they cannot handle on their own (political unrest, natural disasters, accidents, terrorist attacks, crime, illness, or legal problems), they turn to the network of U.S. diplomatic and consular posts for help and protection.
The Department of State assists Americans who travel and reside abroad by providing a wide variety of consular services as well as citizenship and identity documents such as passports and reports of birth abroad. When U.S. citizens encounter emergencies, the Department of State officers help ensure that they receive assistance and protection. Following are some key accomplishments realized in 1999 towards the achievement of this goal.
The protection and welfare of Americans overseas is a top priority of the Department of State. Approximately 3.2 million Americans reside abroad, and Americans make more than 54 million trips outside the U.S. each year.
Disseminating Information Using the Internet
The Department has been successful in disseminating information on consular services and travel safety using the Internet. The Department of State's goal is to have web site average 150,000 "hits" per day and 95% of users finding the information helpful.
The Department's web site averaged approximately 240,000 "hits" per day which is over 87 million "hits" during the year. This is 31 million more than in 1999. Ninety percent of users found information helpful. Those who did not find the information helpful indicated that their dissatisfaction stemmed from an inability to get their questions answered by telephone, an unwillingness or inability to call the passport information 900 number, and the absence of a listing of the winners of the Diversity Visa lottery. The Department strives for continual improvement in the web site and has planned enhancements, such as on-line status checks, to reduce such complaints. Additional areas were added including a new section on auto safety abroad, a visa reciprocity table, an interactive non-immigrant visa form as well as an updated passport services section. The Department's web site earned a place on Government Executive magazine's list of the 16 "Best Feds on the Web", honors from Forbes.com ("The most concise and authoritative resource online for information on international adoption.") and Galaxy.com ("Top 10 Travel Web Sites").
Reduced Child Abduction Caseloads.
The Department has been successful in reducing the workload to 90 per officer to left-behind parents in child abduction cases. In 1994, the Department created the Office of Children's Issues (CI) as the focal point of federal efforts on international parental child abduction and international adoption issues. During FY 2000, the Department increased staffing from 11 to 26, improving the ability to help these children and better serve parents. At the end of the year, each abduction case officer managed an average of 90 cases, a reduction from 140 the previous year but off from the target of 80 cases per officer. The indicator, "case workload per officer to left-behind parents in child abduction cases" is being discontinued as an indicator of the Department's performance in protecting American citizens. New liaison positions with the National Center for Missing and Exploited Children (NCMEC) and outreach and customer services have relieved abduction case officers to focus on working cases.
Improved Passport Service
In the first government-wide customer satisfaction survey, the Department's services to passport applicants scored high in all of the areas measured: information accessibility and usefulness; professional behavior of employees; convenience and timeliness of the application process; and the value of the passport. The survey showed the service passport customers received exceeded their expectations and the majority of customers with previous passport experience were more satisfied than they were two years ago. The Department's American Customer Satisfaction Index score of 73 on a scale of 1-100 was two points higher than the norm for private-sector service industries and more than 6 points higher than the aggregate score for the federal government. The consortium that produced the Index (the University of Michigan Business School, Arthur Andersen, and the Federal Quality Consulting Group) considered the results excellent.
Continued Support of Americans Abroad
The Department takes its responsibility very seriously to inform those U.S. citizens traveling or residing abroad of potential risks to their safety. The Consular Information Program alerts the public to problems they may encounter abroad. A Consular Information Sheet is issued for every country, providing travelers with basic information. Travel Warnings and Public Announcements are issued when Americans should avoid travel to or use caution in certain countries and to alert them to dangerous situations. During the year, the Department of State issued 40 Travel Warnings and 138 Public Announcements. Consular officers abroad assisted U.S. citizens when they most needed help.
This fiscal year, the Department worked on 6,500 death cases and 2,500 arrests, made 5,000 prison visits, and responded to 187,000 welfare/whereabouts inquiries. The Department also helped in 3,300 illness or injury cases and 495 medical evacuations, granted $539,889 in repatriation loans to 654 people, provided $55,981 in Emergency Medical and Dietary Assistance Loans and transferred $1,379,417 from family, friends, and other non-governmental sources to 692 destitute citizens abroad.
In addition, the Department registered the presence of 2,029,450 American citizens overseas, protected property and estates 42,000 times, answered 2,173 Congressional inquiries, issued 44,222 Reports of Birth and 277,535 passports, processed 292,241 notarial and judicial cases and paid out over $2.8 billion in federal benefits to more than 4.3 million overseas beneficiaries.
Strategic Goal: Travel and Immigration
Control how immigrants and non-immigrants enter and remain in the United States.
The United States has been a beacon of freedom and opportunity throughout its history. Immigrants make important contributions to the nation, and visitors contribute directly to U.S. prosperity. The large numbers of people seeking to enter the U.S. illegally present major law enforcement, border security, and socio-economic problems.
The Department of State shares responsibility with the Department of Justice's Immigration and Naturalization Service (INS) for administering U.S. immigration laws fairly and effectively. U.S. consular officers provide for the lawful entry of persons who seek to enter the U.S. either temporarily or as immigrants. Consular screening helps deter illegal immigration by preventing terrorists, narcotics traffickers, and other criminals from entering the United States. Consular officers employ special techniques and technologies, such as machine-readable documents, biometric indicators, and sophisticated name checks, to expedite lawful entry, identify criminals and terrorists, and inhibit illegal immigration.
The U.S. continues to be an attractive destination for foreign tourists, and nonimmigrant visa (NIV) workload at Foreign Service posts during FY 2000 totaled over 9.3 million. Immigrant visa (IV) workload totaled over 669,000 applicants. Posts electronically provided 55 percent of the issued immigrant visa data to immigration inspectors at 16 major ports of entry.
Border Security Program
The Border Security (Biometric) Program is the Department's effort to comply with Section 104 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 which requires that every Border Crossing Card (BCC) issued as of April 1, 1998, contain a biometric (a fingerprint) and be machine-readable. The legislation also required that all existing cards, estimated at 5.5 million, be replaced by October 1, 2001.
The Department began accepting applications for biometric cards on April 1, 1998, in Ciudad Juarez, Mexico with eleven additional posts brought on line over the next two years. In FY 2000, the final two posts in Mexico were equipped to take BCC applications. Since June 2000, all twelve posts countrywide process BCC applications. Additionally, consular officers process applications at four locations along the border using a portable NIV enrollment system. Visa officers in Mexico adjudicate the applications, then electronically forward the data to INS. Three INS card production facilities produce the cards in the U.S. and return them to Mexico for delivery to the applicant.
Results of the Border Security Program have been partially successful. The date of September 30, 2001 for issuance of all 5.5 million cards likely will be missed. INS capacity is approximately 1.7 million Border Cross Cards per year. Additionally, replacing the existing BCCs has been difficult due to:
To further improve the process, the Department is developing a pilot program to produce cards at posts in Mexico. Local production would shorten the time required to get cards to applicants, eliminating the need to issue temporary visas to first-time applicants, and reduce transit time and risk of loss. The operational prototype planned to be ready in spring 2001.
To promote replacement applications, Department of State posts have actively engaged in public relations efforts through the media, by speaking to a wide range of organizations, and by facilitating group applications for affinity groups. Flyers are being developed for circulation at ports of entry reminding cardholders of the approaching deadline. All posts are using a central appointment system and bank fee collection to facilitate the application process. Nevertheless, it appears likely that an extension of the deadline will be required to avoid disruption of cross-border traffic and trade..
While Nogales did not quite reach the target performance indicator in the FY 1999-2000 Performance Plan, Nuevo Laredo far exceeded it. This disparity reflects the difficulty in projecting visa demand, particularly for a new program with no history from which to extrapolate.
Expanded Visa Waiver Pilot Program
Legislation to make the Visa Waiver Program (VWPP) permanent was signed by the President on October 30, 2000. The VWPP allows visitors from 29 countries to enter the U.S. for business or pleasure up to 90 days without a visa. This program allows the Department to concentrate precious resources in those countries where cases are more complicated or difficult due to fraudulent or terrorist activities. If the VWPP were to end, it would immediately double the Department's nonimmigrant workload. This would result in a huge backlog of cases which would be devastating to the U.S. travel and tourism industry. Twenty-nine countries are approved for the VWPP.
Streamlined Visa Processing
A number of steps have been undertaken to improve and streamline immigrant and nonimmigrant visa processing:
In June 2000, NVC notified 90,000 randomly chosen lottery entrants they could apply for one of the visas to be issued in FY 2001. With an eye to the future, the Department developed the new Kentucky Consular Center and prepared its staff to handle the DV lotteries for FY 2002 and beyond. The site was identified, purchased, renovated and opened within a 10-month period while creating some 50 jobs in a region of Kentucky with historically high unemployment rates.
During FY 2000, the Department enhanced the integrity of the nonimmigrant visa by changing the format and coding of certain data. While this project has proven a huge success, the Department has already commenced working on a new design for an even more secure visa.
NATIONAL INTEREST: Law Enforcement
Strategic Goal: Law Enforcement
Minimize the impact of international Crime on the United States and its citizens.
Transnational crime represents a growing threat to the prosperity and well-being of Americans. International criminal organizations have become increasingly global and sophisticated. Their prevalence and resilience affects U.S. interests in stability, immigration and democracy.
The Department works with foreign governments to prevent international crime and to enhance their ability to provide the U.S. with improved assistance to identify, investigate, arrest and prosecute international criminals.
Building Relationships Through Training.
The International Law Enforcement Academies (ILEA) established in 1999 in Bangkok and Budapest are helping to build relationships for U.S. law enforcement agencies and to combat international crime. The Department's training programs at these and other overseas locations, encompassing intellectual property rights, white collar crime, stolen cars, anti-smuggling, and anti-money laundering, are protecting U.S. interests and commerce.
In 2000, the Department began a partnership with the Government of Botswana to create an International Law Enforcement Academy that would initially serve southern Africa and eventually all of Africa. Construction began this year. ILEA Botswana will open in late 2001 and bring police and judicial officers from around the continent to learn both basic police science and prosecutorial procedure and to provide specialized and advanced training courses to the untrained and deficient law enforcement agencies in an Africa faced with rampantly growing violent crime and transnational organized crime.
In FY 2000, 31 training courses were provided to prosecutors and judges through the Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) with the Department's anticrime funding. Typical training courses included: Investigating and Prosecuting Public Corruption, International Asset Forfeiture and Asset Sharing, and Investigating and Prosecuting Transnational Organized Crime.
The Department also provided $3.5 million in Hurricane Mitch funding to support anti-corruption training and assistance in Nicaragua, Guatemala, Honduras, Costa Rica, and El Salvador.
Department-funded programs were extremely successful in supporting USG goals to help Venezuela replace an inefficient, closed, and corruption-prone legal system with a dramatically different, open, adversarial, U.S.-style system. Department of Justice trainers with LEGATT participation conducted a prosecutor training program that trained all of Venezuela's prosecutors in case preparation skills and oral trial techniques.
The Department funded and provided bilateral anti-money laundering technical assistance and training in Freedom Support Act (FSA)-designated countries of Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan, as well as through its Crime and Support for East European Democracy (SEED) Act monies delivered anti-money laundering training to the Central European countries of the Czech Republic, Lithuania, Macedonia and Romania.
Through a project managed by the U.S. Agency for International Development (AID) and the Department of State, a bi-national judicial panel has promoted judicial conferences involving U.S. and Mexican judges. The goal is to help the Mexican judiciary modernize the court systems and improve the prosecution of major crimes, such as drug trafficking.
Supporting International Crime Control
Since 1998, the Department began providing assistance to Hungarian authorities on developing a Task Force Against Organized Crime. Over the course of two years, this initiative has provided extensive training to Hungarian police and prosecutors. In FY 2000, the Department provided funding to support the continued training and procurement of equipment for the newly established Joint U.S.-Hungarian Task Force Against Organized Crime. The training will continue to emphasize interagency cooperation, case management and investigating/prosecuting organized crime.
Through the Organization of American States (OAS) drug commission (CICAD), the Department sponsored two conferences on youth gangs. The first explored the increasingly transnational nature of these gangs (e.g., the Salvadoran "Maras" which operate in both El Salvador and the U.S.) and identified recommendations for how governments can address this problem. The second conference for government officials, police and non-government organizations that work with youth gang members, provided training which included techniques for assisting youth at risk from being lured into gangs. A parallel youth crime prevention project, based on a model curriculum piloted in Palermo, Italy and Hong Kong, was initiated in four secondary schools in Tijuana, Mexico and San Diego, California.
Through the Department, a Hurricane Mitch-funded anti-smuggling project was initiated this past year in various Central American countries to provide a computer-based immigration lookout system for installation at major ports of entry; carry out a public relations campaign through local media on the realities of illegal immigration; and provide an Internet Website (Virtual Secretariat) for immigration officials who are part of the Puebla process.
The Department also spearheaded successful U.S. Government efforts to persuade this Country's G-8 partners through the Senior Expert Group on Transnational Organized Crime (Lyon Group) to establish within INTERPOL a database of some 5,000 East European Organized Crime figures and companies. The database has thus far promoted 15 investigations in various countries.
Treaties requiring the timely repatriation of stolen vehicles and aircraft were successfully negotiated with Guatemala, Costa Rica and Panama. In addition stolen vehicle treaties were completed with the Dominican Republic and Belize. Each was forwarded to the Senate for advice and consent and the Senate has ratified them. Negotiations continue with El Salvador, Honduras and Venezuela. Mexico has returned some 3,000 stolen vehicles a year to the U.S. Central American countries are also beginning to return increasing numbers of vehicles (including a stolen armored car from Nicaragua).
In an effort to enhance the ability of southern African governments in the Southern African Development Community (SADC) countries to improve border control capabilities against trafficking in narcotics, persons and small arms, the Department funded assessments of three major border crossing points involving South Africa, Mozambique, Swaziland and Tanzania. These assessments will be followed in 2002 with training and technical/material assistance to improve border controls on both sides of these ports of entry.
Improved Human Rights
In June 2000, the Department funded the U.S.-Ukraine Regional Law Enforcement Workshop Against Trafficking in Women and Children to facilitate cooperation in investigating cases of trafficking and in safely repatriating Ukrainian victims of trafficking. The workshop resulted in cooperation between Israel and Ukraine on an investigation of a trafficking case.
Strong U.S. support and leadership pushed negotiations on a UN Convention against Transnational Organized Crime to completion and brought two supplementary protocols (on trafficking in persons, especially women and children, and migrant smuggling) to the point where all three documents were ready for approval by the UN General Assembly early in the next fiscal year.
Department funded programs, through the UN Center for International Crime Prevention, assisted the Philippines and Poland in 2000 in developing coordinated and comprehensive projects to address trafficking in persons. Both of these projects are components of the Crime Center's Global program against trafficking and will serve as pilot projects for implementation work on the trafficking protocol. A Department web site supported a regional conference in Manila under the auspices of the Philippine and U.S. governments and the UN. The site provides statements of U.S. policy, news on initiatives and links to an array of NGO actors on the topic.
Chinese Alien Smuggling
A comprehensive page on the Department's international website portrays the plight of the thousands of Chinese, who pay
Criminals, known as "snakeheads," tens of thousands of dollars for a chance to illegally enter the U.S. and make their "fortunes." They endure long, difficult voyages, months in hiding, beatings at the hands of snakehead "enforcers." When they get to the U.S, they find themselves trapped by debt their illegal status.
Anti-Money Laundering Program
The Department funded and coordinated more than eighty bilateral anti-money laundering training programs in forty-plus countries globally during FY 2000. The Department also funded a joint U.S.- Canadian anti-money laundering conference that attracted more than one hundred participants from Pacific Rim countries.
The Panamanian legislature passed two bills aimed at combating money laundering and issued two executive decrees modifying Panama's trust laws and permitting Panama's Financial Analysis Unit to share information with foreign counterparts.
Bilateral anti-money laundering technical assistance and training was provided by the Department in Freedom Support Act (FSA) designated countries of Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan, as well as through its Crime and Support for Eastern European Democracy Act (SEED) monies delivered anti-money laundering training to the Central European countries of the Czech Republic, Lithuania, Macedonia and Romania.
The Department funded a U.S. Department of Justice study of the Thai legal system that will provide the basis for improving the efficiency and speed of the judicial system. The Thai also passed their first money laundering statute and this year opened an anti-money laundering office.
Civilian Police Programs
In 2000, the Department deployed a record 850 civilian police to peacekeeping operations in Kosovo, East Timor, Bosnia, and Eastern Slavonia. The Presidential Decision Directive (PDD-71) signed in February 2000, gave the Department the authority and responsibility to implement U.S. capacities to respond to criminal justice aspects of peace operations and other complex contingencies.
Strategic Goal: Illegal Drugs
Reduce significantly from 1997 levels the entry of illegal drugs into the United States.
Most illegal narcotics consumed in the U.S. come from abroad. Control of this foreign supply must complement efforts to reduce drug use and its harmful consequences in the U.S. The Department of State coordinates implementation of those elements of the National Drug Control Strategy that entail relations with or actions by foreign governments, or activities outside the U.S. subject to the authority of chiefs of U.S. diplomatic missions.
The strategy to reduce the availability of illegal drugs in the United States focuses on programs to eliminate their production at their source and to interdict drug shipments before they reach our borders. The Department applies the diplomatic measures required by the Congressionally-mandated annual Narcotics Certification process to identify the major drug producing and transit countries and to encourage these countries to cooperate fully with the United States. The implementation of regional trade pacts also supports these efforts by fostering trade with the U.S. and providing economic alternatives to drug production. Listed below by country is the progress being made by the Department.
In Colombia during CY 2000, the Department and the Colombia National Police (CNP) through their coca eradication program sprayed almost 42,000 raw hectares of coca. This included a series of CNP campaign-style deployments (under INL supervision) to departments never before sprayed in, including Norte de Santander and Tumaco, as well as eradication in the known heavy cultivation areas of Caqueta and the Guaviare. In addition, with Government of Colombia permission, the initial spray flights into the southeastern portion of the Putumayo department were conducted, using resources provided through the Plan Colombia Emergency Supplemental. However, it is expected that, as in prior years, CY 2000 increases in new and expanded cultivation in southern Colombia will more than off-set the reductions due to eradication. Internet websites in English and Spanish explain U.S. Government support for Plan Colombia on a sustained basis.
Bolivia reached its target of eliminating the last of 7,500 hectares of remaining coca in the Chapare, and plans are underway to eliminate the illegal coca in Yungas, and reduce the amount under cultivation there for indigenous use to half the 12,000 hectares currently allowed by Bolivian law. Alternative development crops under cultivation are now nearly fourteen times those of coca crops in the Chapare.
Despite political uncertainties in Peru, the Peruvian anti-narcotics program continues to score impressive gains. During November, the Peruvian Government responded favorably to all outstanding diplomatic notes on narcotics issues; committed additional police resources to eradication and interdiction operations; improved airport anti-drug programs; destroyed a second morphine production lab; and initiated unprecedented coordination and planning meetings to improve short-term operations and long-range strategy. Coca eradication - focused in the less secure valley production zones - has surpassed 5,000 hectares for the year thus far. However, resistance to coca eradication by hardcore coca-growing communities in the Upper Huallaga Valley and other economically depressed areas will slow the scope of the total coca reduction this year.
During 2000, the Department ran a very successful interdiction deployment to Guatemala. At the request of the Guatemala Narcotics Affairs Section, a package of three UH-1N helicopters and one OV-10 Bronco fixed-wing aircraft executed a 120 day deployment and conducted illicit crop reconnaissance and aerial interdiction. The helicopter package was key in several successful cocaine busts.
This past year Brazil implemented Operation Cobra, a GOB plan to reinforce its presence in the border area with Colombia designed to prevent detrimental effects from possible spillover following implementation of Plan Colombia. Because control of transportation routes is essential to the plan, and there is a lack of overland transportation routes in the border area, it will focus on riverine and airborne transportation.
The Caribbean Support Tender (CST), funded in part by the USG, was commissioned in September 1999 as a platform with a multinational crew to support Caribbean coast guards/navies. On its port calls throughout the region in 2000, the CST provided on-the-job training and technical assistance via ship repair and maintenance to strengthen Caribbean maritime interdiction efforts and in support of the 82' cutters donated to the Dominican Republic, Jamaica, and Trinidad & Tobago. The CST also provided hands-on training for the multinational crew provided by the Dominican Republic, the Bahamas, Guyana and Trinidad & Tobago.
In 2000, the Government of Pakistan reduced opium poppy cultivation from 1570 to 515 hectares, and opium production declined from 37 metric tons (MT) to 11. Eight years ago Pakistan was the world's third largest supplier of illicit opium, and now it has virtually eliminated poppy cultivation. Pakistan has shown remarkable purpose and political determination in this effort. The Department has supplied commodities and equipment and funded infrastructure developments such as road building, rural electrification and water supply, encouraging farmers to abandon poppy.
Thailand, supported by U.S. funding, has continued a successful opium eradication project that in 2000 led to the second lowest cultivation and production since the U.S. began crop estimates in the mid-1980s. The eradication forces successfully destroyed 758 hectares cultivated in 2000, resulting in a net opium production of six metric tons for the second year in a row, which is less than one percent of Southeast Asian production.
A greatly expanded 1999 opium crop in India suffered widespread diversion. In response, the Department worked with Indian narcotics officials, providing vehicles and equipment to facilitate new initiatives for more comprehensive law enforcement. The Department also held discussions with senior Indian officials to ensure political support for these initiatives. India responded by dedicating additional personnel and equipment and significantly hampered the diversion of licit opium in the 2000 crop. India obtained an additional 300 metric tons (MT) of licit opium from farmers under similar weather conditions and nearly identical areas of cultivation.
The U.S. and the United Nations Drug Control Program (UNDCP) have worked together with the UN group known as Six Plus Two, consisting of the six countries bordering Afghanistan (Pakistan, Iran, Turkmenistan, Uzbekistan, Tajikistan and China) plus Russia and the U.S. to improve enforcement against the Afghan drug trade. This effort has led to the creation of a Regional Action Plan providing a region faced with a common drug threat a framework for building national counter-narcotics capacities and joining efforts.
The Department supported an advisory program that involved sending a DOJ attorney to Vietnam to assist the Vietnamese in preparing effective draft counter-narcotics legislation. The draft legislation contains provisions allowing counter-narcotics agents to use a broader range of law-enforcement tools and techniques, such as controlled deliveries, and enables Vietnamese and U.S. counter-narcotics agents to work together effectively to apprehend, prosecute, and convict drug traffickers. The draft legislation was presented to the Vietnamese legislature in mid-November 2000 for consideration.
The Department has engaged Europe in on going dialogue on countering trafficking and demand of illicit narcotics. Department of State sent participants to the European Unions' Drug Strategy Conference in Belgium in February 2000. The Department also participated in the Council of Europe's Pompidou Group on the subject of narcotics in Portugal in October 2000.
The Organization of American States antidrug commission (CICAD) carried out its Santiago Summit mandate this past year to design a hemispheric peer review system to evaluate anti-drug performance around the region. The resulting Multilateral Evaluation Mechanism (MEM) provides a systematic and transparent approach to judging national performance in meeting the internationally-established standards and objectives of the UN Convention -- based on objective criteria. The USG continued to use the United Nations Drug Control Program (UNDCP) as a principal programming agency for illicit crop elimination and alternative development in countries such as Burma and Afghanistan where we are constrained for political reasons.
Publicizing U.S. Demand Reduction Efforts
Finally, the publication "Drug Facts and Figures," in English and Spanish, seeks to engage active international cooperation by demonstrating U.S. commitment to the other half of the drug control equation - reducing domestic U.S. demand.
Strategic Goal: Counterterrorism
Reduce international terrorist attacks, especially on the United States and its citizens.
International terrorism continues to threaten U.S. interests around the world, and developing good working relationships with other countries is important in fighting the threat. The dangers to American citizens, civilian and military facilities and foreign policy interests, as well as the threat of the weapons of mass destruction continue to make terrorism a national security issue and law enforcement challenge. The Department of State works aggressively to thwart terrorists before they can get into striking distance, by curbing their funding, munitions, sanctuaries and freedom of movement to target areas.
Expanded International Cooperation and Training
The Department of State continued to strengthen the political will, international cooperation, and operational capability of friendly countries willing to participate in counterterrorism efforts. The Department's ATA program, which trains foreign officials, continued to expand. Working groups were established with Russia and India, while intensive bilateral exchanges continued with such key countries as Canada, Great Britain and Israel, and also with Australia in preparation for the Olympic games. During the year, the Department hosted 25 regional and multilateral conferences and two major interagency counterterrorism exercises.
Deterred Terrorist Attacks
The U.S. Government led a major and successful effort to deter attacks by groups linked to Bin Laden and planned for the Millennium period. The effort involved intense intelligence collection and contacts with a number of countries. Jordanian security forces, which the Department has been aiding in their antiterrorist capabilities, prevented a major attack against Americans at hotels and tourist sites in Jordan. A terrorist plot involving efforts by middle easterners to cross the border from Canada into the State of Washington was deterred by an alert U.S. Customs Officer. The United Nations approved new international conventions against terrorist bombings and fund raising, and the United States worked with other countries to encourage other bilateral and unilateral measures against terrorist funding.
The Department maintains a computerized, all-source database - TIPOFF - which provides biographic elements and law enforcement reports to American, Canadian and Australian consular, immigration and customs officials. This year, the Department expanded the program into a network linking the FBI and other intelligence agencies directly into the database. The TIPOFF program blocked the entry of 91 terrorists and 15 organized crime figures during 2000.
Improved Security Measures
The Department continued efforts to improve the physical security of its buildings overseas by strengthening perimeter security and taking other steps to protect personnel. The Department continued to provide leadership to the interagency counterterrorism research and development program which funds a variety of projects to detect explosives, weapons of mass destruction and mitigate blasts.
NATIONAL INTEREST: Democracy
Strategic Goal: Democracy
Increase foreign government adherence to democratic practices and respect for human rights.
Democracy and respect for human rights are central components of U.S. foreign policy. Supporting democracy not only promotes such fundamental American values as religious freedom and worker rights, but also helps create a secure, stable and prosperous global arena in which the United States can advance its national interests.
The Department recognizes that democracy is much more than just elections. The slow development of democracy in some states demonstrates that elections should be regarded not as an end in themselves, but the means to establish a political system that fosters growth and self-fulfillment of its citizens by promoting and protecting their political and civil rights.
Developments occurring during 2000 in which the Department played a role included:
NATIONAL INTEREST: Humanitarian Response
Strategic Goal: Humanitarian Response
Prevent or minimize the human costs of conflict and natural disasters.
As evidenced in both their opinions and their behavior, the American people believe that they and their government should be leaders in helping those suffering from natural or manmade disasters - even when there may be no threat to U.S. Security interests.
One of two indicators of success is the SPHERE Project funded by the Department. Through the SPHERE Project, the Department led a diverse group of International Organizations and Non-Governmental Organizations (NGOs) in agreeing upon standards and sharing best practices in the sectors of health, water and sanitation, food nutrition and shelter and site planning. The SPHERE standards have been completed and are available on the Internet www.sphereproject.org in five languages. Nine workshops were conducted around the world in 2000 to train international and local humanitarian organizations in the use of the standards.
The SPHERE standards were endorsed by the United Nation's (UN) office for Coordination of Humanitarian Affairs (OCHA) and the UN Interagency Standing Committee as guidelines for emergency planning and programming. Twenty organizations have committed to piloting the standards. The Department's tracking of SPHERE standard data will become routine in future years. The two most notable sudden mass migrations in 2000 took place when 270,000 people fled East Timor and when 900,000 refugees returned to Kosovo. No reports of extraordinary suffering as a result of unmet basic needs were reported among the returning Kosovars. Among the East Timorese population who fled to West Timor, conditions were difficult to measure due to the pervasive insecurity and insufficient access by international aid workers.
The second indicator of success is the utilization of the UN established information sharing and early warning capabilities to generate timely or anticipatory action to natural disasters and complex humanitarian emergencies. The Department, in partnership with other government and non-government organizations, provided funding and a network of information culminating in the following accomplishments:
Other Humanitarian Efforts
The Department's Humanitarian De-mining Program has assisted 37 countries on five continents in confronting the direct and indirect effects of landmines. U.S. humanitarian de-mining assistance has reduced landmine casualties, restored agricultural land to productive use, returned refugees to their homes, and provided health care for mine victims and their families.
Humanitarian Victim Assistance
The Department also managed, within 24 hours, interagency approval of DOD drawdowns for flood victims in Venezuela and southern Africa. In addition, the Department worked with non-governmental organizations and the Department of Defense for the delivery of humanitarian assistance to the victims of natural and man-made disasters
The Department provided assistance on the floods in Mozambique in the Spring of 2000. The floods were devastating and generated a multilateral response that included US forces. The Department assisted by using Geographic Information System (GIS) tools and declassified intelligence data to match up radar-based calculations of flood zones with population distribution, highlighting areas where there would be concentrations of vulnerable groups. These maps were provided to US diplomats and posted on the United Nation's ReliefWeb site.
In January 2000, the Department launched an extensive web site on refugee and migration issues to provide reports on USG initiatives with NGOs and International Organizations, legislative and treaty underpinnings for activity in this area, and updates on special refugee situations from Sudan to Afghanistan.
Prevention of Atrocities
During FY 2000, the Department completed its first year of helping to implement the President's initiative to improve genocide early warning. A new monthly report was inaugurated by the Department that focuses on atrocities trends and analyses.
In addition, the Department co-sponsored a conference hosted by the Holocaust Museum on Atrocities Prevention bringing together officials from eleven countries, the United Nations, and non-governmental organizations. The conference provided for the development of a common strategy to better steps to prevent their occurrence.
NATIONAL INTEREST: Global Issues: Environment, Population & Health
Strategic Goal: Environment
Secure a sustainable global environment in order to protect the United States and its citizens from the effects of international environmental degradation.
Whether from over fishing in the oceans, greenhouse gases in the atmosphere, releases of chemical pollutants, or destruction of forests or degradation of freshwater supplies, damage to the global environment threatens the health and security of all Americans and the future of our increasingly global economy. As the international community concludes and implements agreements that will constitute the global environmental framework for the next several decades, it is critical that the U.S. provide strong leadership to shape outcomes that advance both our environmental objectives and our economic interests, and promote standards abroad that approach those the U.S. enforces at home. Moreover, we need to ensure that international financial institutions and foreign official export credit programs take into account environmental concerns to promote sustainable development. This is critical in today's world where private international capital flows exceed government-provided funds by as much as 10 to 1, and are central to the economic hopes of many developing countries.
Our efforts on global environmental protection fall into three categories:
International Treaties & Agreements
Working with other U.S. agencies, scientists, businesses, and citizen groups, the State Department develops positions and policies that address complex international environmental issues. We then negotiate with other countries, building support for those positions, and ensuring their inclusion in pertinent treaties and agreements. Successful conclusion of the Biosafety Protocol in January 2000 resulted in an agreement that promotes $60 billion of U.S. agricultural exports while also protecting the environment. And, in concert with other nations, we are working to gain adherents to an agreement that bans or severely restricts the production and use of chemicals and pesticides such as DDT -- long banned in the U.S. but still produced and used elsewhere -- that contaminate soil, food and water both at home and abroad. We also concluded a major agreement to conserve tuna and other highly migratory fish stocks in the central and western Pacific Ocean -- a fishery that produces $250-$400 million in annual revenues for U.S. industry.
International Private Capital
Private capital flows have become the engine of economic growth in many developing countries, eclipsing official development assistance. As we set out to negotiate free trade agreements, either bilaterally or regionally, it is critical that we include consideration of the environmental implications of expanded trade and help our trade partners level up their domestic environmental standards. The Department of State is working with USTR, the WTO and other trade institutions to develop a framework for higher levels of environmental protection and effective enforcement, compliance, and monitoring of environmental laws. The financial decisions of ECAs, publicly funded government agencies that support private investments worth billions of dollars around the world yearly, have significant environmental consequences, as well. State works with Treasury and other organizations to ensure that ECAs support capital flows that take environmental standards into account.
International Initiatives and Official Development Assistance (ODA)
Many developing countries, faced with a daunting agenda of public policy issues, do not have the capacity to address the environmental challenges they confront. In the Middle East and Africa, water shortages threaten regional stability and undermine efforts to promote economic growth. In East Asia and the Pacific, environmental degradation and air pollution cause widespread disease and greatly reduce economic productivity. State works to ensure that developmental assistance provided by U.S. agencies helps developing countries build their ability to protect their environments. We thereby build good will with our negotiating partners and directly improve the global environment. Even with the best of efforts, no single donor country can hope to solve international environmental degradation on its own. State therefore seeks to promote international responses targeted at key environmental issues that affect U.S. citizens and interests. For example, building on our efforts and experience gained in the Middle East, we are forging a coalition of donor countries to focus ODA on regional cooperative management of vital freshwater resources.
Our FY 2000 accomplishments include:
Enhanced Forest Conservation
The U.S. succeeded in getting G-8 Foreign Ministers to agree to extend the G-8 Action Program of Forests for two more years, with particular emphasis on combating illegal logging. After five years of UN negotiations, the Department of State won agreement to create a new UN Forum on Forests to facilitate coordinated international action as an alternative to negotiating a new global forest treaty.
Negotiated Agreements on Greenhouse Gases
The Department continued to work with other nations to elaborate the Kyoto Protocol of the UN Framework Convention on Climate Change. The Department brokered EU and Umbrella Group agreement on the rules for participation in the Kyoto Mechanisms, and achieved broad support for the U.S. position regarding the operations of the Clean Development Mechanism. Although differences remain on the extent to which a country can use carbon 'sinks' to meet its Kyoto target, the U.S. proposed 'phase-in' approach for accounting for carbon sinks was viewed by many countries as a positive step forward.
Strengthened Science at State
The Secretary issued a landmark science policy statement and report, established a Science Directorate in the Bureaus of Oceans and International Environmental and Scientific Affairs, and appointed a Science and Technology Adviser. Also in FY 2000, the Department conducted a comprehensive review of overseas science positions, undertook a program of outreach to the science community, and hosted science roundtables designed to bring scientists and other experts together with policy makers.
Addressed Invasive Species
The Department conducted a survey on government awareness around the world of the potential threat of invasive species, a problem that is costing the U.S. some $130 billion a year. The results revealed that a few countries share our concern, but the vast majority were unaware of this serious problem. The Department subsequently took several steps to address this emerging crisis, including: chairmanship of the International Working Group on the National Invasive Species Council, development of an international work and management plan for the Council, involving like-minded governments in efforts to form a voluntary intergovernmental initiative to address the issue, and development of regional workshops to educate government officials about this potential threat.
Protected Oceans and Fisheries
The Department of State led Federal efforts in the UN General Assembly to strengthen protection for the global marine environment. To help depleted fish stocks recover from over fishing and to protect marine mammals, the Department led international efforts to adopt and implement stronger conservation standards for ocean fisheries, reduce over-capacity in global fisheries, combat illegal fishing, and protect seabirds from fishing activity. The United States ratified the regional protection regime for endangered sea turtles in the Western Hemisphere, and helped initiate a similar protection regime for the Indian Ocean. The Department chaired the eight-nation Arctic Council, an intergovernmental forum designed to address environmental protection and sustainable development issues. The Council adopted a Framework for the Sustainable Development of the Arctic and an Action Plan to reduce sources of pollution, approved U.S. proposals for an Arctic Climate Impact Assessment, a PCB project in the Russian Federation, and a Circumpolar Surveillance network for infectious diseases.
Strategic Goal: Population
Stabilize World Population Growth.
Stabilizing world population is vital to long-term U.S. interests. Rapid population growth undermines stability and economic and social progress, and can contribute to environmental degradation in many developing countries. Population stabilization that is grounded in human rights, especially for women, promotes democracy, reduces poverty, and leads to a healthier workforce, all of which helps create a more stable global arena in which to advance U.S. interests.
Though improved health programs have contributed to dramatic declines in infant mortality over the past 30 years, maternal deaths - tragically - have not seen similar declines. Worldwide, more than half a million women die each year of pregnancy-related complications. The Department of State, in observation of World Health Day (April 7, 2000), joined forces with hundreds of U.S. and foreign non-governmental organizations around the world to recognize the critical role that U.S. international population assistance plays in saving the lives and protecting the health of women around the world. The Department worked tirelessly with a bipartisan coalition in Congress to pass increased funding for the international family planning and related reproductive health programs. This year funding was increased to $372.5 million.
In addition, the Department participated in the 33rd Session of the United Nations Commission on Population and Development and led efforts to improve the United Nations Secretariat's analysis and distribution of demographic, social and economic data. The Department of State led a coalition of countries in securing the commitment of all governments to make the reduction of maternal morbidity and mortality a health sector priority at the United Nations' five-year review of implementation efforts of the 1995 World Conference on Women Platform for Action ("Beijing+5").
During the year, U.S. technical and program assistance continued to assist approximately 60 countries with their family planning and related reproductive health programs. Assistance was provided to developing country governments to monitor and evaluate their national population policies in meeting the three quantitative goals adopted by nearly 180 countries at the 1994 International Conference on Population and Development (ICPD). These three goals are the reduction of infant, child and maternal mortality; the provision of universal access to education, particularly for girls; and the provision of universal access to a full range of reproductive health care and family planning services.
Strategic Goal: Health
Protect Human Health and Reduce the Spread of Infectious Diseases.
The United States has direct interests in safeguarding the health of Americans and in reducing the negative consequences of disease worldwide. Epidemics can directly threaten public health in the United States. Unhealthy conditions elsewhere in the world increase the incidence of disease, increase human suffering and retard development. Humanitarian values lead Americans to support improvements to global health, even in the absence of other direct interests.
The United States has a direct interest in protecting the health of Americans and in reducing the global burden of disease. With increased globalization of economies, transport of goods and peoples, and technologies, the American people are ever more integrated into the world at large. The recent outbreak of the West Nile virus within the U.S. is an example of how a pathogen originating elsewhere can have major repercussions to American public health. Furthermore, diseases, especially those linked to poverty, can undermine economic growth and stability, and threaten the political stability of nations and regions.
The Department of State has responsibility for foreign policy issues surrounding international health, particularly for infectious diseases of epidemic or pandemic proportions, which pose a serious threat to American citizens and the international community. State engages senior leaders in governments and across multiple sectors to create awareness and to spur action. State plays a central role in negotiating international agreements and advancing American interests at international organizations, efforts that enhance global capacity to confront and avert health threats. Our efforts fall along two major fronts:
Reducing the incidence of targeted diseases
The U.S. is concerned about the continued global spread of major existing infectious diseases such as HIV/AIDS, malaria, polio, tuberculosis, as well as new and emerging pathogens. Confronting and averting these threats requires a network of scientists and leaders working cooperatively across borders and continents. The U.S. also retains a special interest in addressing non-communicable diseases, such as childhood malnutrition, that debilitate populations inhabiting impoverished regions.
State interacts with foreign government leaders to raise the level of national political and financial commitment accorded to health. State also works cooperatively with international financial institutions to boost financial resources available for health efforts. Embassies assist U.S. and World Health Organization responses to emergency outbreaks of infectious diseases. State leads public diplomacy and public awareness campaigns to inform and educate key foreign audiences about steps aimed at both communicable and non-communicable diseases.
Strengthening health care capabilities in targeted regions
In addition to its unilateral and multilateral efforts in international health, the U.S. also seeks to spur other nation's own efforts to improve health systems. State acts as a catalyzing intermediary, leveraging U.S. technical expertise with those from international sources to spur biomedical research, for example. State helps facilitate the efforts of the Agency for International Development in building public health infrastructure in developing regions. State also recognizes the rapidly evolving challenges of improving accessibility and affordability of medicines in developing countries and seeks, in discussions with other governments and international institutions, to overcome obstacles and identify new solutions.
Throughout the year 2000, the Department's diplomatic engagement on HIV/AIDS and other emerging infectious diseases ranked among our highest foreign policy priorities. Department principals engaged with a variety of diplomatic partners, hammering home the fact that AIDS in particular poses an unprecedented threat to economic development, social cohesion, and political stability. State raised AIDS and infectious diseases at major diplomatic meetings such as those held at G-8, US-EU, APEC summits, and at bilateral meetings with key donor and affected nations. The Department also pursued strengthening US-European Union cooperation on AIDS and major infectious diseases in Africa as a priority of the US-EU summit. As a result, both sides are identifying potential steps to help African nations heavily impacted by the epidemic. The U.S. introduced and successfully passed a UN Security Council (UNSC) resolution on HIV/AIDS and its implications for UN peacekeeping operations. The resolution -- the first ever on a health issue by the UNSC -- calls for increased efforts by the UN and its member states to prevent the spread of HIV among UN peacekeepers.
The Department employed extensive public diplomacy to reinforce this issue at the XIII International Conference on AIDS held in Durban, South Africa, in July, 2000. This included a special Durban web site to supplement the Department's main HIV/AIDS web page. Both sites featured extensive materials including official statements from members of the 100-plus U.S. delegation, scientific reports, extensive background materials and daily feature stories. An electronic journal: AIDS: The Threat to World Security, was released on the eve of the Durban conference and widely circulated. In the three months of the fiscal year following the conference the Department began a series of speaker programs and digital videoconferences, in an Africa-wide HIV/AIDS initiative that continues.
Improve and strengthen the international relations of the United States by promoting better mutual understanding between the people of the United States and the peoples of the world through educational and cultural exchanges.
On October 1, 1999, USIA became part of the Department, with the bulk of USIA's programs going to two new Bureaus of the Department: International Information Programs and Educational and Cultural Affairs. Although the Department of State's FY 1999-FY 2000 Performance Plan contained no USIA goals, public diplomacy initiatives are included throughout the narrative portion of this report and the following significant accomplishments in exchange programs inherited from USIA are discussed below.
On October 1, 1999 the Bureau of Educational and Cultural Affairs (ECA) was consolidated into the U.S. Department of State. At the time, Mutual Understanding, the primary mission of the Bureau was not recognized as a goal for the Department. Therefore, ECA is reporting on its primary mission in a format that was in place at the time.
The legislative premise of the Bureau is that its work represents a long-term investment to develop "friendly, sympathetic and peaceful relations between the United States and the other countries of the world." The expectation is that most of the dividends exchange programs will pay will occur in the future, are broad in scope, and are not tied directly to the budget cycle in which the activity was funded.
ECA realized many examples of success in its efforts to promote mutual understanding through its own ECE funding, as well as other interagency transfers such as Freedom Support Act and SEED funding.
United States' First International Education Policy
The Bureau's Office of Academic Programs developed and implemented a national strategy promoting international education. In April 2000, President Clinton signed a directive committing the federal government to support international education, and calling on U.S. educational institutions, state and local governments, non-governmental organizations and the business community to make a similar commitment.
Mexico's President Fox Named Fulbrighters to Top Jobs
Fulbrighter Builds E-Commerce in Ghana
From Wired, August 2000: "Before Ethan Zuckerman became an accidental millionaire, the Tripod cofounder spent a year in Ghana as a Fulbright scholar. Now the high-energy 27-year-old is going back with his new startup, Geekcorps (www.geekcorps.org), which he began with Elisa Korentayer. The nonprofit plans to send tech workers to developing nations to build E-commerce systems, teach Java to coders who work in Cobol, and deliver other tech know-how." Zuckerman received a Fulbright student grant to Ghana in 1993-1994 to study West African percussion. He earned his B.A. degree in economics from Williams College in 1993. The first six Geekcorps volunteers arrived in Ghana in September. They are helping small and medium businesses in Ghana to bridge the digital divide in e-commerce and identify international markets.
Distance Learning to Teach African-American Literature
An innovative online course on Toni Morrison's novel "Beloved," taught by Southwest Texas State University in spring 2000, provided overseas EFL educators with new information on African-American literature and the experience of participating in an online course using email and the Worldwide Web. Fifty-seven EFL teacher trainers, curriculum developers, and textbook writers participated in the course, representing 26 countries from all geographical areas. The group collaborated on a Web site [http://exchanges.state.gov/education/engteaching/course] and continued their discussions via the course listserv for months after the course had ended. Several participants made presentations on the course at conferences, and many incorporated the novel into their EFL classes.
Former International Visitors now hold very prominent positions in the present Colombian Government. The IVs include: the Vice President of Colombia, Gustavo "Bell" Lemus (1994); Ex-President of Colombia, General Secretary OAS, Cesar "Gaviria" Trujillo (1982); Commissioner for Peace, Victor G. Ricardo (1987); Attorney General, Alfonso "Gomez-Mendez" (1987); Minister of Culture, Juan Luis "Mejia" (1984); and Minister of Education, German "Bula" Escobar (1987).
City Development Initiatives in Jordan
Upon his return from an International Visitors Multi-Regional group project on mayoral politics and local government, Nabil Kofahi, the elected mayor of Irbid, a city with a population of 350,000 in Northern Jordan, implemented several initiatives, including: (1) the distribution of 10,000 small plastic litter bags labeled "Care About Your City" for residents to use in their cars, (2) the establishment of a city development office to construct playgrounds in vacant lots; (3) the creation of a committee of community representatives and engineers charged with naming and signing all city streets (most streets were unnamed and unsigned), (4) the design of a website to inform citizens of local activities and events, (5) the facilitation of visits of foreign tourists and businessmen; and (6) the development of a sister city relationship with College Station, Texas, a city which was a part of his U.S. program.
Small Business Development Program
After returning home from the U.S., participant George Medvedev moved from his position as head of a business-related NGO to assistant to Russian State Duma Deputy I.D. Grachev, Chairman of the Committee on Property, Privatization and Economic Activity. In his new job, Medvedev used data gathered on his program to authorize three bills aimed at protecting entrepreneurs. Another participant, Ms. Alla Bazhina, has replicated in Yekaterinburg a business incubator she observed in the U.S. Like Medvedev, Bazhina believes that small businesses will re-create the Yekaterinburg economy; consequently, she and others have formed a small political party and are intent on electing a pro-business deputy to the regional legislature.
Civic Education in Nigeria
The Center for Civic Education is working with CIVITAS-Nigeria and other grassroots organizations to develop a democracy curriculum for secondary schools in Nigeria. 4000 copies of a student text and teacher's guide entitled We the People...Project Citizen has been published in Nigeria, and 76 Nigerian teachers have been trained in its use. 60 secondary schools are now developing local projects based on this curriculum, which they will present to each other in a major showcase event in April 2001.
Women in Politics
The "American Film Preservation Showcase" tour of Europe is raising awareness of the need for all countries to strengthen their preservation efforts. With three of twenty countries in the tour completed, the Showcase has received extensive and favorable print and electronic media coverage. Moscow said the festival generated strong positive reaction toward America and its culture. Amsterdam said it reached out beyond film aficionados and made a much wider general audience think about the necessity of film preservation. In Budapest, the Hungarian Academy of Theatre and Film hopes to launch a course in film preservation. And the Hungarian National Film Archive plans to arrange an international conference on preservation with the European Union in spring 2001.
Through funding from the Freedom Support Act, the Bureau of Educational and Cultural Affairs realized accomplishments including:
Partnerships Promote Interaction Between Students From Ukraine And U.S.
University partnerships develop innovative new curricula that benefit students in both countries. Carnegie Mellon University has been a leader in the use of computer simulations in business education in the United States and had previously assisted the International Management Institute in Kiev, Ukraine to introduce the use of computer simulations to its business curriculum. NISCUPP support has enabled Carnegie Mellon and its partners in Ukraine both to create a modified simulation course that reflects the specific business realities in Ukraine and to run joint courses that bring together students from the United States and Ukraine in the same simulation. Because students on both sides benefit from interacting with each other, Carnegie Mellon intends to continue operating joint classes with its own resources after the conclusion of the grant.
Artashes Ziroyan of Armenia, Head of the Department of Ecology at the State Botany Institute and President of the Farmers National Union, traveled to Cambridge, Massachusetts in May of 2000 on the Community Connections Program. The local program focused on how local and regional governments address environmental issues and how these issues play into effective public administration. In July 2000 after his return to Armenia, he was appointed as a Vice Minister of Ecology by the Armenian government. The Vice Minister contacted the Embassy in Yerevan and the local recruiter for Community Connections in Armenia to express his gratitude for the Cambridge program and said that much of what he learned on the program would serve him well in his new position.
Media Internships for Russia
The International Center for Journalists conducted a program with funding from ECA for 16 Russian print media professionals. The program's goal was to provide internships that would help Russian newspaper managers find strategies to survive in Russia's tough economy, to discover that fair and ethical news media can nurture a civil society even in difficult times, and to study the relationship between the U.S. media and government. Since their return to Russia, participants of this program have reported financial improvements and the ability to manage staff more professionally. For example, one participant, the publisher of "AIF Udmurtii" in Izhevsk, began to issue special sections that generate additional revenue, and overhauled the advertising department resulting in increased retail sales of 2,200 copies.
Future Leaders Exchange (FLEX) Promotes Volunteerism at Home
Teachers in Teaching Excellence Award Program Make Changes After U.S. Program
A number of TEA alumni are successfully implementing projects that developed from their program experiences. A TEA 1999 alumna in Uzbekistan obtained grants to fund a language learning resource center in her town, focusing not only on English language and American Studies materials, but also on resources designed to promote discussion of civic and community-related issues and the development of youth leadership. In Samara, Russia, a TEA 1997 participant started a summer language school with a focus on personal development, attitudinal change and values. Seventy students attended this past summer. She also designed a new American Studies course based on the integrated approach learned during her U.S. professional development program at the University of Delaware.
Bosnia-Herzegovina Diplomatic Training Program
Bosnia-Herzegovina Business and Local Governance Training Program
The Bureau's Office of Policy and Evaluation completed finalized and issued three evaluation reports in FY 2000.
Arrival Host Family Study
The USIA Evaluation on the Use of Arrival Host Families was conducted to secure data on the use of arrival (temporary) host families in the High School Exchange Visitor Program (J-1 visa) and to assess the impact on high school exchange participants relative to program quality, success and completion. The findings of the evaluation indicated that there is no evidence that the use of arrival host families, in itself, jeopardizes the personal safety and welfare of high school exchange students and there is no significant difference between the overall success and completion of students placed in arrival host families and similar students placed in permanent host families at the beginning of the school year.
The evaluator recommended several ways for the Department of State-designated program sponsors to improve the administration of the program, including: communicate the short-term nature of an arrival host family placement to exchange students and natural parents before students depart their home country; screen and orient all students and arrival and permanent host families in accordance with the same criteria described in the Department of State's governing regulations; respond quickly and appropriately to problems that arise during the exchange program; and improve host family recruitment strategies and procedures. One recommendation for the Department of State is to conduct targeted follow-up studies to assess program sponsors' ongoing compliance with governing regulations and program sponsors' administration of the critical programmatic processes.
Hubert H. Humphrey Fellowship Program Evaluation
The primary goal of the evaluation was to assess the impact of the Humphrey Fellowship on the alumni and their home countries and to determine whether the program meets its legislative mandate and goals of: 1) updating the professional expertise and leadership skills of Fellows; 2) broadening Fellows understanding and knowledge of development issues; 3) contributing to mutual understanding; and 4) establishing and enhancing long-lasting partnerships.
A key finding is that 95 percent of Humphrey Fellows return home with substantive new knowledge, skills and abilities leading to the integration of technology into the workplace and adoption of new management practices, such as teamwork, conflict negotiation, and a holistic approach to problem solving. A large number of Fellows changed positions upon their return home and reported both greater responsibility and higher status. A second key finding is that 98 percent of Humphrey Fellows report significantly increased and more balanced understanding of American practices and culture. Ninety-four percent report the same of U.S. government and policies. Alumni of the Humphrey Program are often called upon to act as translators of American culture and behavior. A third key finding is that 81 percent of Humphrey Fellows maintain both professional and personal contact with people in the United States and other Fellows. The continued contact and exchange of information has enabled independent and joint papers and proposals, the initiation of regional and international collaborations, community service projects, and business ventures. Since the study was designed to document outcomes, the independent evaluator did not provide recommendations based on the findings.
Study of the U.S. Summer/Winter Institutes
The purpose of the evaluation was to assess the impact of the Summer/Winter Institute experience on foreign scholar participants, including changes in their behavior and activities in their institutions, communities, and in the international arena. A case study was conducted on Romanian alumni of the Study of the U.S. Institutes.
One of the primary goals of the Study of the U.S. Institutes is to strengthen curricula and improve the quality of teaching about the United States. A key finding is that 100 percent of the alumni surveyed have a more comprehensive understanding of American values and society as a result of participation in an institute. Alumni revamped their curricula and presented more current and factual information on the United States to their students. New teaching methodologies have been implemented in classrooms throughout Romania as a direct result of exposure to different techniques used in the U.S. Institutes. Other findings include, of the alumni surveyed:
The major recommendation from the evaluation noted that while the Study of the U.S. Institutes have effected changes and linkages in Romania, the multiplier effect could be enhanced through the addition of an alumni follow up system.
Worldwide Program Evaluation of Public Diplomacy Tools
In January, 2000, all U.S. ambassadors overseas were asked to rate the products and programs of the Bureau of Educational and Cultural Affairs (ECA), the Bureau of Public Affairs (PA) and International Information Programs (IIP). It was the first survey of its kind since 1992-93. Altogether, 123 missions responded and the aggregate analysis published in April. Among the significant findings:
DIPLOMATIC READINESS GOALS
The ability of the Department of State to advance the foreign policy interests of the United States, including supporting the overseas roles of the other Federal agencies represented abroad, depends upon the quality of Departmental personnel, technologies, and infrastructure. Diplomatic readiness, a core responsibility, is the strategic asset that enables the Department to carry out its mission.
The Department of State's Strategic Plan identifies three principal components of diplomatic readiness: human resources, information and infrastructure and operations.
DIPLOMATIC READINESS GOAL: Human Resources
Enable the U.S. Government to achieve foreign policy objectives and respond to international crises by cultivating a skilled, motivated, diverse, and flexible workforce.
People are the Department of State's most significant resource - 25,200 highly qualified civil service, foreign service, and foreign service national employees, with additional contract employees, in over 300 locations in the U.S. and overseas. Sound workforce planning and management is a critical component of diplomatic readiness, and a challenging task, especially given the complexities of operating overseas. Since the Department represents the U.S. to the world, its workforce must be highly skilled and truly representative of the American people, while its employment practices must demonstrate the U.S. commitment to the principles of fairness and equal employment opportunity.
Integration of USIA and ACDA Personnel
On October 1, 1999, the United States Information Agency (USIA) was abolished. Functions other than the Broadcasting Board of Governors and the International Broadcasting Bureau were transferred and integrated into the Department. The mission of public diplomacy was established in the Department under the direction of a new Under Secretary for Public Diplomacy and Public Affairs. Two former USIA Bureaus were combined into the Bureau of International Information and Exchange Programs. Also USIA's Foreign Press Centers were incorporated in to the Department's Bureau of Public Affairs, USIA's area offices were combined with the respective regional bureaus of the Department and USIA's Research Office was combined with the respective regional bureaus of the Department, and USIA's Research Office as combined with the Department's Bureau of Intelligence and Research. The Arms Control and Disarmament Agency was integrated into the Department in FY 1999.
Protection of Overseas Personnel
The Department of State continued its enhancement of posts abroad in response to the increased security threat due to terrorism. The implementation of a series of comprehensive security upgrades and countermeasures in response to the U.S. embassy bombings in August 1998 has reduced the vulnerability of embassies and consulates. The Department accomplished most of the objectives funded by the 1999 Emergency Security Amendment, including the following:
Before 1996, the Department of State did not have a professional workforce planning tool to justify its domestic or foreign resource base or a plan for its future needs. With the development of the Overseas Staffing Model (OSM) in 1996 and its application to staffing at diplomatic and consular posts abroad, the Department gained an ability to plan for future requirements. The Department is currently in the process of developing an integrated Department Workforce Plan, similar to a domestic OSM and would include both Foreign Service and Civil Service personnel.
Following the successful integration with USIA, the Department conducted classification reviews and developed standard field descriptions for Foreign Service Public Diplomacy Officers. Public diplomacy positions were integrated into the Overseas Staffing Model.
The Foreign Service Institute (FSI) is located at the 72-acre National Foreign Affairs Training Center (NFATC) in Arlington, Virginia. As the federal government's primary training institution for personnel of the foreign service community, FSI helps promote diplomatic readiness by equipping foreign affairs personnel with first-rate language and area expertise, diplomatic tradecraft, general management and information management skills. In 2000, FSI inaugurated a new Leadership and Management School (FSI/LMS) which combined existing programs from other FSI Schools with new courses. LMS was created, in part, to bring focus to recommendations made in the McKinsey "War for Talent" report and the advisory report of the Overseas Presence Advisory Panel, both of which stressed the critical need to prepare for the future of U.S. diplomatic leadership as we face the graying of the "baby boomer" generation. In its first year, FSI/LMS provided 119,000 hours of training, including crisis management exercises, to about 5,600 enrollees from the Department of State and other US Government agencies. FSI also provided information management, information specialist and language training.
In addition, the Department instituted the Information Technology Skills Incentive Program. Under this program, employees with critical IT skills are financially recognized for their formal certification in specified technical areas. Cited as a "best practice" by the CIO Council and Office of Personnel Management, it resulted in the retention of approximately 500 employees.
Morale, Health and Well-Being
The Department of State initiated the following programs to improve the work-life environment for all employees and for Foreign Service families serving abroad:
DIPLOMATIC READINESS GOAL: Information Resources
Strengthen the ability of the United States to achieve its International Affairs goals and respond to crises through effective and efficient information resource management and information systems.
The collection, analysis and communication of information concerning international issues and developments of importance to the U.S. Government are essential to achieving foreign policy goals. Given the vast quantities of information available today, there is a premium on value-added and timely information. Secure and reliable information networks, are essential tools for the policy process
and Department operations at home and abroad. They are equally critical for the effective conduct of foreign relations and for communications with the rest of the government and the public.
On January 1, 2000 one of the 59 mission-critical systems had a table sorting problems in a payroll system. The problem was quickly fixed. All other systems, mission-critical and non-mission-critical, functioned flawlessly throughout the year.
Public diplomacy was critical to engaging the active participation of a nervous world on this issue. The Department coordinated the interagency effort to share information through a series of speaker programs, document translations and continual use of the Washington File, the Department's round-the-clock press service to the field.
During 2000, the Department has successfully addressed and brought to closure a number of material weaknesses reported under the Federal Managers' Financial Integrity Act (FMFIA) - Mainframe Contingency Planning, Mainframe Security, and IT Modernization and information systems Security. The improvements made in IT security merited a change in the grade Congress awarded to the Department's IT security posture from "C" to "B". The Department also developed an agency-wide Systems Security Program thereby satisfying a major weakness reported by the General Accounting Office (GAO).
Other IT security related accomplishments by the Department include:
Other successful initiatives include establishment of a Computer Incident Response Team (CIRT), creation of the Computer Incident Response Capability (CIRC), establishment of the Virus Incident Response Team (VIRT) and the completion of comprehensive test of Mainframe Contingency and Disaster Recovery Plans for the Department's critical business processes.
Modern, Integrated, Accessible IT
During 2000, the Department continued to work to connect its entire workforce to a single, large-scale network, called OpenNet, to be linked to the Internet and the World Wide Web. This effort, with the ALMA (A Logical Modernization Approach) initiative to improve the links to the OpenNet for all overseas posts. The Public Diplomacy Network (PDNet), inherited from USIA, is a fully modernized LAN/desktop infrastructure in place all around the world, which enables the Department to participate with its global audience via the Internet. PDNet, with its extensive access to the Internet, is both the source and distribution lifeline for much of Public Diplomacy's activities. Without this expanded Internet capability via PDNet, the Department's Public Diplomacy mission would be rendered useless, and the Department as a whole would be crippled. The Department's plan is to integrate and build on these systems for more universal access to a fully modernized LAN/desktop infrastructure around the world.
DIPLOMATIC READINESS GOAL: Infrastructure and Operations
Establish and maintain infrastructure and operating capacities that enable employees to pursue policy objectives and respond to crises.
The Department of State operates and maintains a network of diplomatic and support facilities in over 250 locations world-wide, ranging from highly developed countries with advanced infrastructure to underdeveloped crises-bound nations without reliable communications, transportation, or bank systems in all 24 worldwide time zones. The Department must respond to a vast array of support needs at overseas posts, ensuring that representatives from all U.S. Government agencies and their families can live and conduct business safely and efficiently, with due regard for morale, even in unhealthy or dangerous locations.
As part of the Department's Energy Efficiency Action Plan, energy management best practices are being adopted through participation in EPA's Energy Star Partnership. Energy conservation efforts include (1) A solar energy procurement was awarded for the Florida Regional Center as a Federal Energy Solar Showcase Facility and (2) BTU consumption for those Washington area buildings for which the Department is responsible was reduced 3% in FY 2000. .
A number of initiatives were undertaken to ensure the safety and efficiency of the domestic facilities entrusted to the Department:
High priority initiatives have been undertaken to provide safe and secure overseas facilities for the Department of State:
The Department continued in 2000 its enhancement of posts installing Network Intrusion Detection systems to count cyber-terrorism attacks, now deployed at 95 posts and 146 locations.
Real Property Holdings Overseas
The Department has instituted an asset management strategy to determine the "highest and best use" of its underutilized and excess property. Working with the posts, the Department disposes of excess and underutilized property. At any given time during FY 2000, the Department was marketing between 75 and 100 properties.
The Department planned on starting designs for 13 major rehabilitation projects in FY 2000. This goal was met. Plans provided for 16 projects to be completed; based on amount and timing of funding received, 12 were actually completed. The Department had a 2000 goal to install new fire protection systems to protect 23,500 sq. meters of office space in embassies that are without such systems. Due to loss of the prime contractor, only 10,200 sq. meters of protected space was accomplished.
In addressing overseas energy reduction goals, the Department has been able to decrease the annual energy expenditure 9.4% or $3.96 million. This was accomplished even though the total area of Department facilities has grown by 19% since 1991.
Safety and Security at Domestic Facilities
While addressing the increase in threats and incidents abroad, the Department is also having to address significant increased demands on domestically based personnel in support of overseas operations, including the protection of the Secretary, visiting foreign dignitaries and employees servicing in domestic facilities. Programs specifically designed to enhance domestic security include (1) Implementation of a validated visitor access control system and (2) Replacement of State employee identification cards, which exploit Smart Card technology.
The replacement of the employee passes with Smart Card technology, targeted to begin by the end of FY 2000, has been delayed. Also, during FY 2000, the Department obtained two (versus target of four) armored vehicles for the domestic fleet. The Secretary's replacement armored limousine has been ordered. The Department was successful during FY 2000 in ensuring the safety of dignitaries was not compromised as evidenced by the World Trade Organization Conference, the Middle East Peace Talks and the Millennium Summit.
In safeguarding all classified and sensitive information from being compromised, the following initiatives have been undertaken by the Department: (1) Seven posts have installed the Video Entry Guard Alarm Systems (VEGAS) bringing the total of posts completed to 17. Funding restraints did not allow 100% installation. The remaining 5 installations are on track and will be completed in FY-2001. (2) Unclassified systems at all embassies/consulates report to a central location. All posts now have access to a monitoring center which forwards incidents to a Computer Incident Response Team. (3) The phased deployment of a Network Intrusion Detection Systems on unclassified systems at all overseas locations is ongoing . This effort is 40% complete with 146 locations at 95 posts being monitored at the central monitoring center. (4) Approximately 99% of newly assigned Information Systems Security Officers received training. (5) Periodic security reinvestigations of personnel has been unsuccessful due to insufficient resources. The office of Diplomatic Security will strive to meet the 5-year cycle for reinvestigations by seeking and applying additional funds and positions.
The Federal Financial Management Improvement Act (FFMIA) requires agencies to meet (1) Federal financial management system requirements, (2) applicable Federal accounting standards, and (3) the United States Government Standard General Ledger at the transaction level. FFMIA also requires an agency to submit a Remediation Plan when the agency is not in substantial compliance with the aforementioned requirements. In 2000, the Department continued to maintain substantial compliance with two of the three major components of the Federal Financial Management Improvement Act: Compliance with the U.S. Standard General Ledger at the transaction level and compliance with Federal accounting standards. The IG, in her statement for the Committee on Appropriations and Subcommittee on Commerce, Justice, State, The Judiciary, and Related Agencies, U.S. House of Representatives, acknowledged this position in March 1999. The third and final component, attaining substantial compliance with our financial management systems, is the main focus of our FFMIA Remediation Plan established with 0MB in March 2000. This plan identifies twelve initiatives or projects that are being accomplished over the next several years. The first year of this plan, Fiscal Year 2000, saw a number of these initiatives successfully completed:
The Department's acquisitions web site on the Internet was enhanced in 1998 through an interagency agreement with the Army that produced the "Statebuy" interactive platform. Overseas missions can now post their procurement solicitation documents directly on the Web. Cost avoidance as a result of the Department's electronic commerce programs over the past five years is $2 million.
PROGRESS IN ADDRESSING MANAGEMENT CHALLENGES DURING FY 2000
During FY 2000, the Department of State made considerable progress on each of its management challenges. State's Office of Inspector General (OIG) and the General Accounting Office (GAO) have provided substantives review of these areas, and the Department continues to work diligently to address these pressing needs.
Worldwide threats and incidents challenge the Department of State on a scale never before experienced. Terrorism, espionage, cyber terrorism, transnational crime, and other unexpected issues confront us simultaneously. The implementation of a series of comprehensive security upgrades and countermeasures in response to the U.S. embassy bombings in August 1998 has reduced the vulnerability of our embassies and consulates.
As vital and symbolic extensions of the United States in foreign lands, our embassies and employees abroad will always operate at some degree of risk. However, the integration of proven security upgrades and countermeasures to protect our employees are an integral part of the Department of State's goals. Though we have decreased their vulnerability, there are still major improvements needed at our embassies and consulates: completion of technical security upgrades through the Department's Bureau of Diplomatic Security and in coordination with the Office of Foreign Building Operations to support the perimeter security efforts and support for a major capital construction effort to build more secure facilities abroad.
The worldwide upgrades and countermeasures provided through the Emergency Security Appropriation (ESA) included deployment of security professionals to augment security at our diplomatic missions and the enhancement of physical security including additional barriers, reinforced perimeter walls, bollards, closed circuit TV cameras, video recording equipment, hardened guard booths, vehicle barriers, bomb detection equipment, shatter resistant window film, armored vehicles, walk-through metal detectors and x-ray equipment; and installation of additional alarm and public address systems. Additionally, we established mandatory inspections of all vehicles entering U.S. diplomatic facilities; negotiated with host governments to close streets or change traffic patterns in front of the U.S. mission and increase their security presence at our facilities worldwide; established surveillance detection teams; expanded anti-terrorism assistance training to aid foreign police; enhanced training for security professionals; created a chemical biological weapons countermeasures program based upon education, training and equipment; and embarked upon an ambitious field training program that deploys mobile security training teams to each U.S. post on a biannual schedule.
Illegal drugs negatively impact the health and welfare of the U.S. citizens. The State Department, in concert with numerous federal agencies, plays an important role in combating this scourge on American society. Noting the GAO's observation that only a sustained commitment to this problem would yield a substantial reduction in the amount of illegal drugs entering U.S., State continued in FY 2000 to aggressively address this management challenge. The Department worked with key Latin American opium and coca-producing countries to implement comprehensive enforcement and alternative development programs, and had notable success in Peru and Bolivia achieving and sustaining net reductions in coca production. The most significant development in this area was the advent of U.S. involvement with the implementation of Plan Colombia during FY 2000. State's Bureau of International Narcotics and Law Enforcement funded a new UH-1N Colombian army Helicopter Battalion, which provided operational support to Colombian National Police counter drug missions due to provision of additional funding through the Plan Colombia Emergency Supplemental appropriation. State has also assisted the governments of Brazil, Venezuela and Ecuador in the development of various plans to prevent its transit to and through those countries. This past year agreements were reached with the governments of Ecuador and Netherlands to establish forward operating locations an Manta, Ecuador and Curacao and Aruba, to support interdiction and detection and monitoring efforts. In addition, USG-supported opium reduction programs in Thailand and Pakistan continued to produce impressive results.
The United States continues to be an attractive destination for immigrants as well as foreign tourists. While visa processing remains a significant challenge for the Department, State took a number of important steps during FY 2000 to address this issue. The Border Biometric Program, which was initiated in FY 1998, requires that every newly issued Border Crossing Card be machine-readable and contain a fingerprint. In FY 2000, State expanded its capacity to process applications to all twelve posts throughout Mexico, as well as four locations along the U.S. border. The Department is developing a pilot program to produce cards at posts in Mexico, reducing the time required to get cards to applicants. The National Visa Center at Portsmouth, New Hampshire, which suffers from staffing shortages and other management difficulties due to the sheer number of immigrant visa applications, will soon have its workload reduced. With an eye to the future, the Department developed the new Kentucky Consular Center and prepared its staff to handle the diversity visa lotteries for FY 2002 and beyond. The site was identified, purchased, renovated and opened within a 10-month period while creating some 50 jobs in a region of Kentucky with historically high unemployment rates.
The Department undertook significant measures to dramatically improve its strategic and performance planning during FY 2000. The Strategic Planning Management Team, composed of officers from the Secretary's Office of Resources, Plans and Policy, the Office of Management Policy and Planning and the Bureau of Financial Management, developed a new, more streamlined format for the Department's planning products. This structure, which featured performance goals from various Bureaus under each of the 20 Strategic and Diplomatic Readiness Goals, was unveiled in the FY 2001 Performance Plan and received accolades for its significant improvement over previous plans. The new layout fell short, however, in its failure to integrate cross-cutting activities that are managed by multiple Bureaus. This deficiency was addressed with the creation of multi-Bureau goal teams in FY 2000 that assembled to develop single performance goal sheets for each Strategic and Diplomatic Readiness Goal. These 20 teams, chaired by deputy assistant secretaries (or an equivalent officer) and managed by Bureau coordinators, were coached by a member of the Strategic Planning Management Group. All goal teams met and produced strong draft goal sheets in FY 2000 or early FY 2001, demonstrating an increased level of understanding and commitment to performance management throughout the Department. Strategic planning is an iterative process, and the State Department will work to continue improving its efforts to fulfill the spirit and letter of the Results Act in future years' planning efforts.
During FY 2000, the Department expended significant efforts to ensure that State's information technology (IT) systems were protected from unauthorized access, modification or disclosure. The Department undertook several simultaneous initiatives aimed at strengthening State's IT security posture, successfully addressing and brining to closure a number of material weaknesses reported under the Federal Managers' Financial Integrity Act (FMFIA). Those weaknesses were Mainframe Contingency Planning, Mainframe Security, IT Modernization and Information Systems Security. Additionally, improvements made in the area of IT security were sufficiently salient to merit a change in the grade Congress awarded to State's IT security posture from a "C" to a "B." The Department has also developed an agency-wide Systems Security Program Plan thereby satisfying a major weakness reported by the GAO as a result of its 1998 Computer Security Audit of the Department. State also continued to work to connect its entire workforce to a single, large-scale network linked to the Internet and the World Wide Web. The flagship program of this modernization effort is the ALMA (A Logical Modernization Approach) initiative that has improved links to the Open Net unclassified system for all overseas posts. ALMA directly addresses two of the Department's biggest IT problems: unreliable e-mail and antiquated computer equipment. The ALMA and OpenNet infrastructure provides a platform that will yield substantial future benefits for the Department.
Over the past two decades, Congress has enacted a statutory framework to reform the financial management of the government. Significant pieces of this framework include the Federal Managers' Financial Integrity Act of 1982 (FMFIA), the Chief Financial Officers Act of 1990 (CFO Act), the Government Management and Reform Act of 1994, and the Federal Financial Management Improvement Act of 1996 (FFMIA). Like many agencies, the Department has had difficulties in meeting all of these requirements.
The Department has made considerable progress. The Department has received unqualified ("clean") opinions on its agency-wide financial statements since fiscal year 1997, reduced the number of financial management material internal control weaknesses from seven to one, and produced an annual accountability report beginning with fiscal year 1997. In addition, the Department submitted its 2000 financial statements to OMB by the required March 1 deadline. The 2000 financial statements received an unqualified opinion, marking the fourth consecutive year that an unqualified opinion has been rendered on the Department's annual financial statements. While the Department has made progress, several significant issues exist as identified in the Inspector General's report. These issues include the security of the Department's information systems networks for domestic operations, the management of unliquidated obligations, the adequacy of the Department's financial systems, and outstanding OIG audit recommendations including the management of the Working Capital Fund (WCF).
The Department's Management Control Steering Committee (MCSC), with the concurrence of the Inspector General, approved the closure of the material weakness for Information Systems Security for the 2000 FMFIA Report. This was based on the fact that the processes, controls and administration of the Department's information systems security program have been significantly enhanced since this problem was identified in 1997. However, whether these improvements prevent unauthorized access and abuse of the Department's information systems network for domestic operations needs to be independently validated. Until this independent validation is performed, the Auditor's Report on the Department's annual financial statements will continue to report that the Department's information systems networks for domestic operations are potentially vulnerable to unauthorized access. The Department, working with the OIG and the General Accounting Office (GAO), will have an independent review of system security vulnerabilities performed in FY 2001. The independent validation will serve as a Corrective Action Review (CAR). The Department requires that a CAR be conducted in the year immediately following the closure of any material weaknesses. Future steps regarding this issue will depend on the results of the independent validation.
To resolve the issue with unliquidated obligations, the Department implemented the Unliquidated Obligation System to facilitate the reconciliation, reporting, analysis and oversight of unliquidated obligations worldwide. The Department expects to use this new management tool to substantially address the IG concerns regarding the management of unliquidated obligations.
The Department has also made progress on its long-standing weaknesses in financial systems, and currently meets two of the three requirements mandated by the FFMIA. However, these systems will not substantially comply with FFMIA until the Department complies with Federal financial management systems requirements. To achieve compliance, the Department established a FFMIA Remediation Plan (Plan) that has been approved by OMB. During 2000, the first year of the Plan, the Department completed seven of the twelve initiatives identified in the plan. This plan, which includes the establishment of a worldwide financial management system by replacing our overseas financial systems, calls for the Department to achieve substantial compliance by the end of 2003.
The Department continues to work diligently to address all outstanding OIG recommendations and concerns. The MCSC, with the concurrence of the IG, approved for the 1999 FMFIA Report the closure of the material weakness for accounting for the WCF. The Department is working to build upon this success and continue to improve the management of the WCF. For example, the WCF reported a small profit for the fiscal year ended September 30, 2000.
The GAO has pointed out that the Department needs to develop a human resource strategy that is in line with State's mission, an issue that will become increasingly important as Civil Service "baby boomer" retirements begin to surge in the next decade. The complexities of the integration with USIA and ACDA, and the FY 2000 "Y2K" preparations slowed the development of an integrated Department Workforce Plan. The first element of the Department's human resource strategy, the Diplomatic Readiness Plan has been completed and distributed. The Bureau of Human Resources plans to have a first-ever Domestic Staffing Model developed within the next twelve months. It will be the domestic equivalent of the Overseas Staffing Model that was generated in 1996. This model will include the Foreign Service and Civil Service.
A series of reports, including those by the Overseas Presence Advisory Panel (OPAP), the Stimson Center, and the Center for Strategic and International Studies (CSIS), concluded that the U.S.G. needs to evaluate the existing mix and size of agencies' overseas staffing. None of the reports has outlined a methodology for the accomplishment of right-sizing - even OPAP, as it was charged to do.
During FY-2000, interagency teams conducted on-site staffing reviews at six pilot missions in an effort to devise a methodology for right-sizing, The interagency participants in last year's right-sizing efforts concluded that the Washington-based, centralized process proposed by OPAP would be neither effective nor workable. The teams did not agree on a methodology for the reviews, nor did they identify significant staff reductions at the pilot posts. In fact, the teams found that most agencies had already reduced staffing to meet budget cuts. We had more success working with other agencies on projecting the staffing of 11 posts scheduled for design of new office buildings (NOB) during FY 2001.
We have been unable to achieve a consensus with other agencies over right-sizing. There is general agreement that the U.S.G. footprint overseas should be limited to that required to carry out U.S.G. strategic goals; no one wants to create a target-rich environment for terrorists. Other agencies believe that their staffing is commensurate with U.S.G. interests and have little incentive to reduce their existing presence overseas.
In fact, no objective analysis of overseas staffing has uncovered instances of large-scale overstaffing. Overseas staffing declined for most of the 1990s among most of the traditional foreign affairs agencies. Increases were primarily limited to traditionally domestic agencies and law enforcement.