The enemies of liberty and our country should make no mistake: America remains engaged in the world by history and by choice, shaping a balance of power that favors freedom. We will defend our allies and our interests. We will show purpose without arrogance. We will meet aggression and bad faith with resolve and strength. And to all nations, we will speak for the values that gave our nation birth.

-- President George W. Bush, Inaugural Address, January 20, 2001

Today, the rise of democracy and the power of the information revolution are leveraging each other to produce the exciting and kaleidoscopic developments that are transforming our world with breathtaking speed and dramatic depth.

This is a time of great opportunity for America - a time, as President Bush has said, to shape "a balance of power that favors freedom." To do this will require good leadership. We have the requisite power and the tools at hand, from our exceptional corps of diplomats to our sturdy battalions of men and women in uniform, from our superb business people to our brilliant artists in every field. We also have the allies and friends to help us, each of whom in their own way treasures the common values we share, emanating from a fundamental belief in free trade and free people.

As we go about accomplishing this task of leadership, we must "show purpose without arrogance." We have achieved our position in the world because of the dedication, hard work, and skill of our citizens - citizens who come from almost every country on earth. It is their representatives that we must be in the wider world. It is their industry, drive, and ability to live together in and derive strength from an incredible diversity - a diversity like no other in the world - that stands as a shining example to all who would achieve peace and prosperity in their own lands.

The Department of State is at the forefront of this leadership effort because the skillful management and shaping of international affairs is a vital part of America's leadership role in the world. So providing financial support for that process is of paramount concern to the nation.

In past years, the State Department's share of the Federal budget has not been what it should be. With a new Secretary on board, that is changing. The President's $23.9 billion FY 2002 request for International Affairs - over a 5 percent increase from last year - is the first step in that change (and the State Department's share rose 14 percent, a good start there as well).

Secretary Powell has said that he wants to be both CEO and principal foreign policy advisor to the President. The FY 2002 budget request supports that dual role. As CEO, the Secretary has several key priorities in the request, including embassy construction, security, and maintenance; broad-based Internet access for everyone who needs it; modernization of classified information networks; and hiring of new personnel for both the Foreign Service and Diplomatic Security.

As the President's principal foreign policy advisor, the Secretary has several key priorities to implement the President's policies. These priorities include the Andean Counterdrug Initiative; Global Health (in particular the fight against HIV/AIDS); nonproliferation, anti-terrorism, and combating weapons of mass destruction; support of ongoing peacekeeping operations; payment of UN arrears; and advancement and support of democracy and human rights the world over.

Both sets of priorities - the CEO's and the advisor's - ultimately serve the same purpose: shaping a balance of power that favors freedom.

As with any good management method, these two sets of priorities will merge as time goes by, for we cannot have a good foreign policy without the right numbers of people, security for those people, and the information-age tools that we need. Likewise, the right people with the right tools and security cannot do what they ought to do without the financial resources to help them do it.

The FY 2002 budget request, the details of which are highlighted and summarized in this document, represents only the beginning. There are tough roads ahead and steep hills to climb. But what a time of excitement and opportunity - what a time to "speak for the values that gave our nation birth."