Africa: U.S. Foreign Assistance Issues

Order Code IB95052

CRS Issue Brief for Congress

Received through the CRS Web

Africa: U.S. Foreign Assistance Issues

Updated June 19, 2006

Ted Dagne

Foreign Affairs, Defense, and Trade Division

Congressional Research Service ˜ The Library of Congress

CONTENTS

SUMMARY

MOST RECENT DEVELOPMENTS

BACKGROUND AND ANALYSIS

U.S. Aid to Africa: An Overview

Bilateral Aid

Background

DFA and Child Survival assistance

Economic and Security Assistance

Food Aid

Peace Corps

Security Assistance

Regional Programs

African Development Foundation

Refugee and Disaster Assistance

Multilateral Assistance

Total U.S. Assistance

FY2006 Request and Congressional Action

Comparison with Other Donors

Recent Trends in U.S. Aid

Sustainable Development Initiatives

Issues

Millennium Challenge Account

AIDS

NEPAD and the G8

Other

LEGISLATION

Appendix: Selected Africa Assistance Acronyms

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Africa: U.S. Foreign Assistance Issues

SUMMARY

Under the Administration’s FY2006

foreign assistance request, U.S. aid to subSaharan Africa would continue to grow, due

to sharp increases through the State

Department’s Global HIV/AIDS Initiative.

Twelve “focus countries”in Africa are benefitting substantially under this program. Assistance through the Child Survival and Development Assistance programs would decline,

although the Foreign Operations Appropriations Act (P.L.109-102) provides more than

requested worldwide for these programs.

Overall, non-food aid to Africa would total

about $3.6 billion under the request, compared

with an estimated $3.4 billion being allocated

in FY2005.

teers there by the end of FY2005. The U.S.

African Development Foundation makes small

grants to African cooperatives, youth groups,

and other self-help organizations. U.S. security assistance, though still far below levels

seen in the 1980s, has increased in recent

years, primarily because of U.S. support for

African peacekeeping initiatives. The World

Bank’s International Development Association (IDA) is the principal multilateral channel

for U.S. aid, but the United States also contributes to the African Development Bank and

Fund, and to United Nations activities in

Africa.

USAID Administrator Andrew Natsios

has testified that in FY2005, the aid program

is emphasizing peace in Sudan, ending famine

in Ethiopia, and combating HIV/AIDS. He

has also stressed the importance of agricultural development. In a June 26, 2003,

speech, President Bush described a “partnership” with Africa including support for security and development. In August 2002, the

Administration announced initiatives on

access to potable water, clean energy, reducing hunger, and development and conservation

in the Congo River basin. The initiatives are

to make extensive use of public-private partnerships. As part of its counterterrorism efforts, the Administration has also launched

initiatives to strengthen security forces in the

Sahel region and in East Africa.

U.S. aid to Africa reached a peak in

1985, when global competition with the Soviet Union was at a high point. As the Cold

War eased, security assistance levels for

Africa began to drop. In 1995, at the outset of

the 104th Congress, substantial reductions in

aid to Africa had been anticipated, as many

questioned the importance of Africa to U.S.

national security interests in the post-Cold

War era. As the debate went forward, however, congressional reports and bills acknowledged U.S. humanitarian, economic, and other

interests in Africa. Aid levels did fall, but

began a gradual recovery in FY1997. Assistance through the Child Survival and Development Assistance (DA) accounts has now

leveled off, but aid to Africa is reaching new

highs due to aid through the Global AIDS

Initiative.

The overall level of funding for aid to

Africa remains a continuing subject of debate.

Other issues include the eligibility of African

countries for aid through the Millennium

Challenge Account and U.S. support for the

New Partnership for Africa’s Development

(NEPAD), an African initiative linking increased aid with policy reform.

U.S. assistance finds its way to Africa

through a variety of channels, including the

USAID-administered DA and Child Survival

programs, food aid programs, and refugee

assistance. The Peace Corps is expanding in

Africa and plans to have about 2,700 volun-

Congressional Research Service

˜

The Library of Congress

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MOST RECENT DEVELOPMENTS

In February 2006, the Bush Administration submitted a supplemental appropriations

request for Iraq, Afghanistan, funding for the Gulf Coast hurricanes, and other foreign policy

priorities. The Administration requested 514.1 million for Sudan/Darfur. On March 16,

2006, the House approved $618.1 million: $499.1 million for Darfur ($66.3 million for

IDFA, $11.7 million for refugees, $173 million for African Union peacekeeping, $150

million for food aid, $98.1 million for CIPA-U.N. peacekeeping), and $119 million for

southern Sudan ($12.3 million for refugees, $75 million for food aid, $31.7 for CIPA-U.N.

peacekeeping). On April 4, 2006, the Senate Appropriations Committee approved $564

million for Sudan/Darfur: $125 million for southern Sudan and $439 million for Darfur. On

May 4, 2006, the full Senate approved $624 million for Sudan: $125 million for southern

Sudan and $499.1 million for Darfur. In mid-June, the House and Senate approved the

conference report, and on June 15, President Bush signed H.R. 4939. The conference

approved $618.1 million for Darfur and southern Sudan.

Moreover, the conference approved $63.8 million for Liberia for refugee support and

in Economic Support Fund. The conferees also approved $125 million in food aid for East

and Central Africa and $25 million in drought relief support for West and the Horn of Africa.

BACKGROUND AND ANALYSIS

U.S. Aid to Africa: An Overview

Bilateral Aid

U.S. assistance finds its way to Africa through a variety of channels. Bilateral or

country-to-country aid, also known as direct assistance, is given through non-governmental

organizations (NGOs) or private and voluntary organizations (PVOs), contractors, and

African government ministries and agencies. Multilateral aid, or indirect assistance, is given

first to international financial institutions (IFIs) and U.N. agencies, which in turn channel it

to Africa through their own programs.

Background. Figure 1 traces U.S. economic assistance to Africa, including food aid,

in constant (inflation-adjusted) dollars since World War II. U.S. bilateral aid to the region

rose sharply in the early 1960s as most African countries achieved independence. This was

also a time of intense Cold War competition with the Soviet Union. Aid reached another

peak in 1985, when famine struck wide areas of sub-Saharan Africa. The peak may also

have resulted in part from heightened Cold War competition, reflected in President Reagan’s

1983 description of the Soviet Union as an “evil empire.”

Toward the end of the 1980s, competition with the Soviet Union began to fade as a U.S.

priority, while efforts to reduce the U.S. budget deficit began to intensify, contributing to an

overall reduction in assistance to Africa. Moreover, policymakers were placing increased

emphasis on human rights and commitment to economic reform programs in making their

decisions on aid allocations. Consequently, aid to some African countries that had been

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major Cold War aid recipients, such as Zaire (now the Democratic Republic of the Congo)

and Liberia, was sharply reduced. Nonetheless, there was another spike in aid in 1992, when

famine struck the Horn of Africa and the southern part of the continent. Aid then dropped

again, with the reductions coming almost entirely in the security-oriented programs: military

assistance (not included in Figure 1) and especially the Economic Support Fund (ESF). ESF

aid is a type of economic assistance allocated by the State Department, in consultation with

the U.S. Agency for International Development (USAID), with the objective of promoting

U.S. security interests. From the mid-1980s, many in Congress and in the wider aid-oriented

community had come to believe that the security assistance programs in Africa had grown

too large and that more U.S. aid should be used to promote long-term development.

Figure 1. U.S. Economic Aid to Africa

Millions of Constant 2005 $, Fiscal Years

3500

3000

2500

2000

1500

1000

500

0

1950

1960

1970

1980

1990

2000 2005

In 1995, at the beginning of the 104th Congress, proposals to restructure and reduce the

U.S. foreign assistance program raised questions about the future of U.S. aid to sub-Saharan

Africa. Many questioned the strategic rationale for assisting Africa in the post-Cold War era,

and asserted that 30 years of U.S. assistance had accomplished little — whether in terms of

promoting economic growth and democratization, or achieving other objectives. The critics

generally favored humanitarian assistance, but sought sharp cuts in other programs. As the

aid debate proceeded, however, it became apparent that cuts for Africa would be less than

initially anticipated. The view that the United States has important humanitarian, economic,

and other objectives in Africa was vigorously asserted by supporters of the Africa aid

program, and came to be reflected in report language on the major foreign assistance bills,

as well as in the bills themselves. Aid did drop back to the 1990 level in 1996, but a slow

recovery began in FY1997.

A major increase in aid took place in FY2003 because of large quantities of food aid

provided to Ethiopia and southern Sudan, as well as a boost in spending through the Child

Survival and Health Programs Fund in response to the African HIV/AIDS pandemic. Figure

2, which excludes food aid, shows another major development in the assistance program:

sharp increases resulting from spending under the Global HIV/AIDS Initiative (GHAI),

administered by the Department of State. GHAI is the principal component of the

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President’s Emergency Plan for AIDS Relief (PEPFAR) and began operations in FY2004.

Assistance through GHAI to the 12 PEPFAR focus countries in Africa was an estimated

$264 million in FY2004 and $781 million in FY2005, and reached $1.2 billion under the

FY2006 request; while the USAID programs, taken together, leveled off. These programs

are Child Survival and Health, Development Assistance (DA), and the Economic Support

Fund (ESF), as well as Transition Initiatives (TI), a new program that was created under the

FY2006 foreign assistance request to promote stabilization, reform, and post-conflict

reconstruction in fragile states. GHAI assistance includes the provision of antiretroviral

therapy, safe injections, safe blood supplies, and abstinence/faithfulness education. Figure

1 will likely show continued sharp growth in aid to Africa in 2005 once food aid being

provided from emergency reserves to Niger and other countries is attributed to Africa in

USAID data. (Table 3 provides detail on these and other programs that channel aid to

Africa.)

Figure 2. U.S. Non-Food Economic Aid to Africa

Millions of Current $, Fiscal Years

2500

2000

1500

1000

500

0

1996

1998

2000

2002

2004

2006R

Global Aids Initiative

DA, Child Survival, ESF, TI

DFA and Child Survival assistance. Falling ESF levels threatened the overall

scale of the sub-Saharan aid program after 1985, and this threat led to the creation of the

Development Fund for Africa (DFA), which specifically earmarked a minimum level of the

worldwide Development Assistance (DA) program for the region. Obligations for subSaharan Africa projects under the DFA reached $846 million in FY1992, but dropped well

below $800 million in subsequent years despite efforts by some Members to increase the

DFA appropriation to $1 billion or more. The DFA was last earmarked by Congress in the

FY1995 appropriations, when $802 million was appropriated, and DA for Africa has since

been provided out of the worldwide Development Assistance appropriation.

For FY1996, Congress began to appropriate another type of assistance: the Child

Survival and Disease Programs Fund, renamed the Child Survival and Health Programs Fund

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(CSH) in FY2002, which has channeled substantial amounts of aid to Africa. In recent years,

annual USAID presentations to Congress on the budget request for aid to Africa have varied

both with respect to using the term DFA and with respect to including CSH aid in an overall

DA amount or in breaking out CSH assistance and DA separately. This has left the

terminology governing aid to Africa somewhat confused. However, appropriations bills now

treat CSH and DA as separate programs, and that practice is followed in this issue brief.

Meanwhile, the term “DFA” is rarely used today, although the Development Fund for Africa

is mentioned in the Foreign Affairs Authorization (S. 600) reported in the Senate (S.Rept.

109-35) on March 10, 2005 (see below, Legislation).

Economic and Security Assistance

Table 1 ranks African countries that would receive more than $5 million under the

FY2006 request through a wide range of U.S. economic and security assistance programs,

including the Global HIV/AIDS initiative but not food aid and disaster assistance.

Madagascar and Cape Verde have agreed to $110 million compacts with the Millennium

Challenge Corporation (see below), but information on the annual allocation of this aid is not

yet available and it is not included here.

The high aid level for Uganda reflects not only U.S. backing for its struggle against

AIDS, but also a view among policymakers that Uganda’s “[p]rosperity and stability are

essential to growth and stability in the east and central African region” generally (USAID

Congressional Presentation, FY2004). Kenya is going through a democratic transition

following multi-party elections in December 2002; and with Ethiopia, Nigeria, South Africa,

and Djibouti, it is regarded as a strategic partner in the war on terrorism. Sudan’s relatively

high rank reflects U.S. assistance directed to southern Sudan and is focused on conflict

prevention, food security, and primary health care. (Aid for Darfur is being provided

principally through disaster relief, refugee assistance, and Contributions for International

Peacekeeping. For further information, see CRS Issue Brief IB98043, Sudan: Humanitarian

Crisis, Peace Talks, Terrorism, and U.S. Policy, by Ted Dagne.) Policymakers have wanted

to show continuing support for South Africa’s post-apartheid transition, which began in 1994

with the country’s first universal suffrage elections. Moreover, South Africa has the world’s

largest population of HIV/AIDS victims, with an estimated 5 million infected. Aid for

Zimbabwe focuses on the struggle against HIV/AIDS, expanding opportunities for

participation in political decision making, and expanding economic opportunities for the

disadvantaged. No assistance is channeled through the Zimbabwe government.

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Table 1. Leading U.S. Assistance Recipients in Africa

($ millions)

Country

Uganda*

Kenya*

South Africa*

Nigeria*

Zambia*

Ethiopia*

Tanzania*

Sudan

Mozambique*

Liberia

Rwanda*

Namibia*

Botswana*

Mali

Dem. Rep. Congo

Ghana

Malawi

Senegal

Côte d’Ivoire*

Madagascar

Angola

Guinea

Benin

Zimbabwe

Djibouti

Sierra Leone

Eritrea

Burundi

Chad

FY2007

Request

232.6

334.9

359.9

320.2

189.6

283.8

189.7

205.8

156.9

89.9

93.9

82.1

60.4

37.7

39.4

37.9

32.5

33.1

47.1

22.0

29.8

12.9

12.0

15.2

8.3

6.9

.845

9.6

5.9

FY2006

Request

220.4

212.9

189.9

175.7

160.0

145.0

127.5

112.4

81.5

89.8

85.0

58.8

43.7

39.2

33.5

33.4

32.9

30.0

30.0

22.8

20.7

20.5

17.9

14.3

9.3

9.0

6.9

6.1

5.2

FY2005

Estimate

148.6

159.1

139.4

130.1

113.4

114.1

103.4

200.9

80.3

44.1

50.5

44.2

30.5

38.6

38.0

40.3

33.3

29.9

20.9

22.8

21.5

17.7

17.9

13.8

6.3

11.3

10.1

6.4

3.0

FY2004

Actual

112.8

101.2

99.1

80.2

82.1

74.3

58.9

170.7

59.9

203.0

35.9

26.8

11.7

43.0

40.4

41.5

34.8

34.1

7.5

23.3

23.4

21.9

18.4

15.5

7.1

9.2

8.2

6.4

3.1

Source: USAID. Amounts exclude food aid.

Note: All amounts include economic and security assistance, as well as assistance under the Global

AIDS Initiative.

* Global AIDS Initiative “focus” country. Estimated allocations included.

Food Aid. Emergency food aid to Africa fluctuates in response to the continent’s

needs, and the amount provided by the end of a fiscal year often exceeds the initial request.

The additional amount is taken from a food aid reserve fund. Emergency food aid is

provided under Title II of the P.L. 480 program (named for P.L. 83-480, enacted in 1954),

which is implemented by USAID in cooperation with the Department of Agriculture. For

further information on food assistance programs, see CRS Issue Brief IB98006, Agricultural

Export and Food Aid Programs, by Charles E. Hanrahan.)

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Peace Corps. The Peace Corps expects to have more than 2,700 Peace Corps

Volunteers (PCVs) serving in 26 sub-Saharan countries by the end of FY2005, up from an

estimated 1,900 in 2002, because of the Administration’s Peace Corps expansion program.

(For further information, see CRS Report RS21168, The Peace Corps: Current Issues, by

Curt Tarnoff.) Under the Peace Corps Act (P.L. 87-293), volunteers are to help the poorest

people meet their basic needs, to promote a better understanding of the American people, and

to promote a better understanding of other peoples on the part of Americans.

Security Assistance. The security assistance program in Africa, which had declined

with the end of the Cold War, has expanded in recent years, primarily in response to

widening conflict and political instability in Africa. Economic Support Fund aid has been

used to support economic reform in Nigeria, a “safe skies” program to improve African air

traffic safety, human rights and democracy education, and other objectives. ESF aid is also

helping strategic partners in the war on terrorism through cooperation on border control,

freezing terrorist assets, implementation of the peace agreement in southern Sudan, and other

activities. In addition, the Defense Department conducts AIDS prevention education

programs, primarily with African militaries.

Table 2. Contributions for International Peacekeeping Activities

($ millions)

Operation

War Crimes Tribunal - Rwanda (UNICTR)

Sierra Leone (UNAMSIL)

Democratic Republic of the Congo (MONUC)

U.N. Operations in Ethiopia/Eritrea (UNMEE)

Burundi Operation (ONUB)

U.N. Mission in Liberia (UNMIL)

Sudan/Darfur

U.N. Operation in Côte d’Ivoire (UNOCI)

Total

(Numbers may not add due to rounding.)

FY2006

FY2005

FY2004

(Request)

(Estimate)

(Actual)

13.7

3.7

202.3

32.8

89.9

159.2

250.0

71.9

823.5

16.4

47.4

249.1

50.4

94.1

134.3

250.0

112.7

954.3

16.3

71.0

30.1

49.5

41.6

290.3

82.0

580.9

Through the Peacekeeping Operations (PKO) program, the United States supported the

Africa Crisis Response Initiative (ACRI), which trained small units of African armies for

possible peacekeeping duties, as well as for other regional peacekeeping initiatives. In

FY2004, ACRI was succeeded by the Africa Contingency Operations Training Assistance

(ACOTA), which focuses on training trainers and on programs tailored to individual country

needs. Foreign Military Financing (FMF) resumed in FY1999 and under the FY2005 request

under the FY2005 request would be used to strengthen counterterrorism capabilities in

Africa, bolster border security, and help Kenya protect itself against terrorist infiltration from

Somalia. International Military Education and Training (IMET) programs in Africa are

aimed at promoting professionalism and respect for democracy and human rights, while

enhancing capabilities for participation in peacekeeping operations. These programs

typically run well under $1 million per country.

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The United States contributes to United Nations peacekeeping operations in Africa and

elsewhere through a program entitled Contributions to International Peacekeeping Activities

(CIPA, Table 2). Funds for CIPA are appropriated in the legislation that funds the

Departments of Commerce, Justice, and State, rather than in the Foreign Operations

appropriation, which governs foreign assistance.

Regional Programs. Both DA and ESF funds are used to support USAID’s Africa

Regional Programs, which are designed to confront challenges that span the borders of

African countries. These include regional programs in health, conflict prevention,

democracy, education, and agriculture. The Initiative for Southern Africa supports efforts

to promote trade and investment through the Southern Africa Enterprise Development Fund

and other programs. The Trade for African Development and Enterprise (TRADE) initiative

aims at strengthening business and promoting policy and regulatory reform throughout the

sub-Saharan region. The Africa Trade and Investment Policy (ATRIP) program, which

provides technical assistance, training, and other aid to African countries implementing freemarket economic reforms, is part of this initiative. For FY2005, the Administration sought

$4 million in FMF for an African Coastal and Border Security program.

African Development Foundation

The African Development Foundation (ADF) has a unique mandate to make small

grants directly to African cooperatives, youth groups, and other self-help organizations.

These grants usually range from less than $20,000 to a maximum of $250,000, although

appropriations language permits a waiver of the $250,000 ceiling. In addition, the ADF

supports grassroots development research by African scholars and promotes the

dissemination of development information at the community level. By law, the ADF is

limited to 75 employees. Its seven-member Board of Directors must include five

private-sector representatives. ADF does not station U.S. employees in overseas posts, but

instead works through local-hires and periodic field visits. For FY2006, the ADF received

an appropriation of $23 million in the Foreign Operations Appropriations Act.

Refugee and Disaster Assistance

The United States responds to African humanitarian crises in part with Title II food aid,

discussed above, and in part through its refugee and disaster assistance programs. Most

refugee assistance comes from the Migration and Refugee Assistance (MRA) account and

goes to the United Nations High Commissioner for Refugees and international organizations,

as well as private and voluntary organizations assisting African refugees. In addition, the

Emergency Refugee and Migration Assistance (ERMA) account, created in 1962 to deal with

unexpected refugee situations, has been drawn upon for African emergencies several times

in recent years. USAID’s Office of Foreign Disaster Assistance (OFDA) also plays a major

role in responding to African crises. “Situation Reports” published by USAID’s Office of

Foreign Disaster Assistance monitor the U.S. response to African humanitarian crises

through food aid and other emergency assistance. To find these reports, visit

[http://www.usaid.gov/] and click on “Our Work” and “Humanitarian Assistance.”

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Multilateral Assistance

The United States provides aid to Africa indirectly through international financial

institutions (IFIs) and United Nations agencies. World Bank lending through its “soft loan”

affiliate, the International Development Association (IDA) is the largest single source of

development capital in Africa. IDA loans, which are considered a form of aid since they are

virtually interest-free and carry extended repayment periods, have focused on strengthening

public sector management, transportation, agriculture, and various social problems. IDA

has been particularly active in assisting efforts by the recipient countries to carry out freemarket economic reforms. In 2004, IDA devoted about 45% of its new loan commitments

to sub-Saharan Africa, so that about $408 million of the $907 million U.S. contribution to

IDA in that year can be said to have gone indirectly to the region. The African Development

Fund (AfDF) has been another major channel for indirect U.S. aid to Africa. The Fund, an

affiliate of the Africa-based African Development Bank (AfDB), makes loans on highly

concessional terms to the poorest African countries. The AfDB lends on roughly commercial

terms to creditworthy African borrowers, but at the same time, it holds 50% of the voting

power in the AfDF.

Total U.S. Assistance

Table 3 lists most components of U.S. assistance to sub-Saharan Africa and indicates

that under the FY2006 request, assistance would rise to $3.6 billion, not including food aid,

up from $3.5 billion in FY2005. Table 3 includes an additional $674.4 million in FY2005

aid for Africa announced by President Bush in a June 7, 2005, press conference with

Britain’s Prime minister Tony Blair. This additional food, disaster, and refugee assistance

will be drawn from general funds already appropriated by Congress, including funds in the

FY2005 Emergency Supplemental Appropriations (P.L. 109-13), signed into law on May 11,

2005. The components of the additional aid are $90 million in International Disaster and

Famine Assistance, $94.4 million in Migration and Refugee Assistance, $240 million in P.L.

480 Title II food aid, and $250 million in food aid from the Bill Emerson Humanitarian

Trust, administered by the Secretary of Agriculture.

FY2006 Request and Congressional Action. The Bush Administration’s

FY2006 assistance request for sub-Saharan Africa, released on February 7, 2005, would

continue the pattern of increasing aid for the region, largely due to the expansion of the State

Department’s Global HIV/AIDS initiative. Aid through this program would grow by more

than 50%, to $1.2 billion, as compared to FY2005, while aid under the Child Survival and

Development Assistance programs would decline. Development Assistance funds totaling

$95 million for Ethiopia and Sudan have been shifted to the new Transition Initiatives

program for fragile, post-conflict states. Liberia, where elections are scheduled for October,

would receive $75 million through the Economic Support Fund. The Administration

requested $3 million for the Millennium Challenge Corporation (MCC) worldwide, although

$5 billion in FY2006 funding had been anticipated under the original Millennium Challenge

Account program. (See below, “Issues.”)

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Table 3. Assistance Designated for Sub-Saharan Africa

($ millions)

FY2006

Request

FY2005

Estimate

FY2004

Actual

FY2003

Actual

FY2002

Actual

Child Survival & Health Fund

325.9

356.8

477.3

541.1

424.4

Global HIV/AIDS Initiative

1,206.3

781.5

263.8

Development Assistance

428.5

547.4

466.7

490.7

454.0

Transition Initiatives

95.0

—

—

—

—

ESF

151.9

104.2

74.1

109.4

120.0

Peace Corps

68.7

75.7

62.2

63.3

53.7

Program

African Dev. Foundation

18.9

18.8

18.6

18.7

16.5

Migration and Refugee Assistance

256.5

323.8

226.4

228.5

187.5

African Development Bank

5.6

4.1

5.1

5.1

5.1

African Development Fund

135.7

105.2

112.1

107.4

100.0

Liberia/Sudan in Other Appropriations

Millennium Challenge Account

Subtotal, Economic & Humanitarian

385.0

—

—

—

—

—

2,693.0

2,317.5

2,091.3

1,564.2

1,361.2

International Narcotics & Crime

4.2

10.5

6.9

6.7

7.5

Peacekeeping Operations

41.4

133.2

30.2

78.1

54.9

IMET

11.0

10.8

11.2

9.9

10.3

Foreign Military Financing

24.0

26.3

20.9

28.0

33.5

Contributions to Int’l Peacekeeping

823.5

954.3

580.9

366.7

513.0

Nonprolif., Anti-terrorism, Demining

30.4

31.5

25.8

19.7

12.1

DOD AIDS Education, Af. militaries

0.0

7.5

4.2

7.0

14.0

934.5

1,174.1

680.1

516.1

645.3

TOTAL

3,627.5

3,491.6

2,771.4

2,080.3

2,006.5

Food Aid

228.8

1,013.9

1,187.9

1,165.9

462.9

3,856.3

4,505.5

3,959.3

3,246.2

2,469.4

Subtotal, Military and Other

Total Including Food Aid

On November 14, 2005, President Bush signed the Foreign Operations Appropriations

bill (P.L. 109-102). As in previous years, appropriations for most Africa-specific programs

are not earmarked in the bill, but the bill provides more than requested worldwide for Child

Survival and Health programs as well as Development Assistance, suggesting that the

Administration will have ample resources for meeting its proposals for Africa through these

programs. By contrast, the Economic Support Fund and the Millennium Challenge Account

receive less than requested worldwide. The bill provides $2 million less than requested for

the African Development Bank, meets the Administration’s requests for the African

Development Fund, and provides $23 million for the African Development Foundation, as

compared to an Administration request of $18.8 million.

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Table 4. Assistance Requested and Appropriated Worldwide

($ millions)

Program

FY2006 Request

FY2006 Appropriated

Child Survival & Health Fund

1,251.5

1,585.0

Global HIV/AIDS Initiative

Development Assistance

1,970.0

1,103.2

1,995.0

1,524.0

Transition Initiatives

ESF

Peace Corps

95.0

3,036.4

345.0

40.0

2,634.0

322.0

African Dev. Foundation

Migration and Refugee Assistance

18.9

892.8

23.0

791.0

African Development Bank

African Development Fund

5.6

135.7

3.6

135.7

Millennium Challenge Account

International Narcotics & Crime

3,000.0

523.9

1,770.0

477.2

Peacekeeping Operations

IMET

Foreign Military Financing

Contributions to Int’l Peacekeeping

Nonprolif., Anti-terrorism, Demining

Food Aid

195.8

86.7

4,588.6

1,035.5

440.1

885.0

175.0

86.7

4,500.0

1,035.5

410.1

1,150.0

Comparison with Other Donors

According to figures compiled by the Organization for Economic Cooperation and

Development (OECD), the United States was the largest bilateral donor of net bilateral

Official Development Assistance (ODA) to sub-Saharan Africa, in 2003, the most recent year

for which data are available, followed by France, Germany, and the United Kingdom.

However, the European countries and the European Communities together provided

considerably more to Africa than the United States. ODA includes a wide-range of nonmilitary aid disbursements. Many countries continued to give a larger proportion of their

assistance to sub-Saharan Africa than the United States. The region received about 32% of

U.S. ODA in 2002, according to the OECD, in contrast to 57% of French aid , 37% of British

aid, and 47% of German aid. Japan was the eighth ranking donor to Africa in 2003,

according to the OECD, providing about 8% of its aid to the region. On May 24, 2005,

European Union foreign and development ministers pledged that their governments would

reach the United Nations target of providing 0.7% of GDP in foreign aid in 10 years. As an

interim target, the Europeans would provide $25 billion in added annual aid by 2010. Some

cautioned, however, that these pledges could be affected by budget difficulties in some

European countries. France’s President Jacques Chirac announced on August 29, 2005, that

France would propose a tax on air travel to fund additional aid to Africa. The proposal was

made at the United Nations World Summit, which brought more than 170 heads of state and

government to U.N. headquarters in New York, September 14-16. Some heads of state

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spoke favorably about the proposal, but some developing country delegates expressed

concern that the new proposal was offered to draw attention away from the point that official

development aid (ODA) was allegedly too low to achieve the Millennium Development

Goals (MGD).

Recent Trends in U.S. Aid

U.S. officials continue to stress a strong commitment to assisting Africa. In a June 26,

2003, speech to a meeting of the Corporate Council on Africa, President Bush spoke of a

“partnership” with Africa, including U.S. help in establishing peace and security, making

advances in health and literacy, and developing free economies through aid and trade.

During the speech, part of the run-up to his July 7-12, 2003, trip to Africa, the President

announced $100 million in anti-terrorism assistance over 15 months to countries in East

Africa and $200 million over five years both to train teachers in Africa and to provide

textbooks through Historically Black Colleges and Universities. Secretary of State Powell,

addressing the Corporate Council on June 27, 2003, said that Africa’s “boundless potential”

could not be realized unless the continent moved against corruption.

USAID officials have testified that the United States has had a number of successes in

promoting sustainable development, democracy, and conflict resolution. They point to

Ghana, Uganda, Zambia, and Mali, as examples of successful political and economic

transitions, while Mozambique and South Africa are cited as models of transition from

conflict to peace as well. Skeptics of USAID’s programs, noting, for example, widespread

reports of corruption and undemocratic practices in Zambia and a slow rate of economic

growth in post-apartheid South Africa, question whether economic and political gains are

genuine or will endure. With respect to conflict resolution, some note that two leading

recipients, Uganda and Ethiopia, have recently been involved in armed conflicts, as have

some lesser recipients, including Rwanda, Zimbabwe, Eritrea, and Angola. Supporters of

the program respond by acknowledging that problems inevitably arise within and among

countries that face serious challenges with deep historical roots, but insist that overall trends

in Africa are positive and that long-term development efforts cannot be interrupted every

time difficulties occur.

USAID also maintains that the DFA and CSD assistance have helped African countries

achieve increases in child immunization and the use of oral rehydration therapy, shift their

health policies towards an active emphasis on AIDS prevention, increase the prevalence of

contraceptive use, and boost primary school enrollments. In agriculture, USAID asserts that

DA has helped liberalize agricultural markets, increase smallholder production; and facilitate

the development of new seed varieties. DA has also been used to assist governments

undertaking macro-economic reforms, including reductions in the size of government

bureaucracies and the privatization of government enterprises.

The Clinton Administration launched several special development initiatives in Africa.

The Greater Horn of Africa Initiative (GHAI), aims at easing the perennial food insecurity

in a region extending from Eritrea and Ethiopia to Tanzania by promoting collaboration and

consultation on food security strategies. The Initiative for Southern Africa (ISA) reflects

USAID’s recognition of the region’s economic potential and its desire to reinforce South

Africa’s democratic transition as a model for the rest of the continent. The initiative includes

a Democracy Fund, to make grants in the region in support of democracy, and a Southern

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Africa Enterprise Development Fund (SAEDF), to promote indigenous business

development and ownership.

The Leland Initiative aims at connecting 20 sub-Saharan countries to the Internet. The

initiative is named for the late Representative Mickey Leland, founder of the House Select

Committee on Hunger, who died in a 1989 plane crash while on his way to investigate

conditions in an Ethiopian refugee camp. Technicians from several U.S. government

agencies are working to implement the project, which will make Internet access available to

“all sectors of the African development community,” including NGOs, government agencies,

“private developers,” and individuals. (USAID press release, June 6, 1996.)

South Africa has been a special focus for USAID for several years. After the

installation of a democratically-elected government in May 1994, President Clinton pledged

the United States to $600 million in aid to South Africa over three years. The United States

guaranteed loans for housing, electrification, and small business development. Resources

have also been used to support the growth of small, medium, and micro-enterprises

(SMMEs) in South Africa; strengthen the South African justice system; improve education;

promote primary health care; and foster majority involvement in business.

The Africa: Seeds of Hope initiative grows out of congressional action in 1998, when

the Africa: Seeds of Hope Act (P.L. 105-385) was passed. The proposal was strongly

supported by Bread for the World, which describes itself as “a nationwide Christian citizens

movement seeking justice for the world’s hungry....” The act supports USAID’s Africa Food

Security Initiative by encouraging a refocus on agriculture and rural development. A

presidential report on implementation of the act argued that even more could be done in

agriculture if more funds were available.

President Bush, speaking at the Leon Sullivan Summit in Washington on June 20, 2002,

announced a new Africa Education Initiative. The President promised to double U.S. aid for

education in the region, bringing total spending to $200 million over the next five years. The

President also announced that he would visit Africa in 2003. As noted above, Africa will

also benefit if two other Bush initiatives win approval: the Global AIDS Initiative,

announced by the President in his State of the Union Message on January 28, 2003, and the

Millennium Challenge Account (see below).

Counterterrorism is the focus of other recent assistance initiatives. The Pan-Sahel

Initiative (PSI) is a joint Defense and State Department program that provides training and

equipment to the armed forces of Mauritania, Chad, Niger, and Mali. According to

Administration officials, the initiative has helped these countries respond to the threat posed

by Algeria-based Islamist guerrillas. The East African Counter-Terrorism Initiative (EACTI)

is training law-enforcement officers in Kenya and other countries.

Sustainable Development Initiatives. On August 23, 2002, the Department of

State released information on four initiatives or “signature partnerships,” which were

formally announced at the World Summit on Sustainable Development (WSSD) in

Johannesburg on August 29. These initiatives were the Water for the Poor Initiative, the

Initiative to End Hunger in Africa, the Congo Basin Forest Partnership, and the Clean Energy

Initiative. The initiatives, which drew praise from the United Nations representative to the

conference, stress “public-private partnerships,” through which U.S. assistance funds would

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be used to leverage investments in Africa by other governments, international organizations,

NGOs, and the private sector. For example, under the West Africa Water Initiative, part of

the Water for the Poor Initiative, USAID would provide $4.4 million as a partner in a $41

million, five-year effort to supply potable water and sanitation to rural villages in Ghana,

Mali, and Niger. Other partners would include the Conrad N. Hilton Foundation and

UNICEF. Skeptics of the initiatives maintain that the amounts of U.S. assistance being

offered are modest and seem to come largely from funds that have already been budgeted or

promised. Some also complain that the funds might be used to promote private business

interests. (New York Times, August 30, 2002.) The initiative to end hunger aims at

harnessing science and technology to boost agricultural production and at strengthening

markets to assist small farmers.

In addition to the signature partnerships, USAID released documents at WSSD

reviewing U.S. actions intended to prevent famine in southern Africa and fight infectious

disease. Another document reported on a $15 million investment guarantee by the U.S.

Overseas Private Investment Corporation (OPIC) to support the construction of low-income

housing and associated infrastructure in South Africa. The guarantee would help a U.S. forprofit company support a bank making construction loans to private developers and

contractors. (OPIC press release, August 29, 2002.)

Issues

Millennium Challenge Account. In a March 14, 2002 speech, President Bush

outlined a proposed Millennium Challenge Account (MCA), which would increase foreign

aid worldwide by $5 billion per year over three years, starting in FY2004. The account

would provide additional aid to countries whose governments promote good governance,

invest in people through education and health care, and promote open markets. Although the

promise of increased aid won praise from many observers, some worried that most countries

in Africa will not be able to meet the Fund’s eligibility criteria. In May 2004, the

Millennium Challenge Corporation announced that 8 African countries had been determined

to be eligible to receive grants: Benin, Cape Verde, Ghana, Lesotho, Madagascar, Mali,

Mozambique, and Senegal, and agreements have been reached with Madagascar and Cape

Verde for MCA programs valued at $110 million each. Nonetheless, the program has been

criticized for what some see as a slow disbursal of funds, and as noted above, overall funding

for the MCA is turning out to be less than President Bush initially proposed. For further

information, see CRS Report RL32427, The Millennium Challenge Account: Implementation

of a New U.S. Foreign Aid Initiative, by Larry Nowels; and U.S. Government Accountability

Office Report GAO-05-625T, Millennium Challenge Corporation: Progress Made on Key

Challenges in First Year of Operations (April 27, 2005).

AIDS. The level of funding for HIV/AIDS programs in Africa remains a major focus

of interest. This issue is covered in CRS Issue Brief IB10050, AIDS in Africa, by Nicolas

Cook. See also CRS Report RS21181, HIV/AIDS International Programs: Appropriations,

FY2003-FY2006, by Tiaji Salaam-Blyther.

NEPAD and the G8. In 2001, African leaders approved the New Partnership for

Africa’s Development (NEPAD), championed by the presidents of South Africa, Nigeria,

Senegal, and others. Under the plan, African countries are to intensify efforts to eradicate

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poverty, strengthen democracy, deal with corruption, and resolve conflicts in exchange for

debt forgiveness from the developed countries as well as increased aid, trade, and

investment. NEPAD includes a “peer review mechanism” intended to assure that African

governments are held accountable for their performance with respect to governance and

economic policy.

At the June 2002 G-8 summit at Kananaskis, Canada, attended by key African leaders,

donors launched an Africa Action Plan to be implemented as NEPAD reforms move forward.

Whether the G8 donors and Africa are living up to their Kananaskis promises is

controversial. Britain will host the July 2005 G8 summit in Scotland, and Prime Minister

Tony Blair intends to focus the meeting on Africa once again. Sweeping proposals for 100%

debt relief, sharply increased aid, and the removal of trade barriers are expected to be

discussed. For more information, see CRS Report RL32796, Africa, the G8, and the Blair

Initiative, by Raymond W. Copson.

Other. The overall level of U.S. assistance to Africa could again emerge as an issue

in the foreign assistance debate, particularly in view of pressures from Britain and others for

a dramatic expansion of aid to Africa. Some observers express a number of frustrations with

aspects of the foreign assistance program, but these have had little impact on the

congressional aid debate to date. Some argue, for example, that reductions in operating

expenses have forced staff and mission cutbacks that complicate USAID’s ability to

implement the Africa DA program. Critics of this view maintain that USAID must deal with

budget constraints that affect other parts of the government as well. Some also maintain that

the Child Survival earmark has absorbed funds that might otherwise have been used to

promote long-term development, which in turn would promote better health among both

children and adults. Others argue, however, that the Child Survival program has channeled

funds to a critical, immediate humanitarian need, and that the American people strongly

support assistance that benefits impoverished children, funds HIV/AIDS programs, and

promotes vaccine research, among other objectives.

Meanwhile, a debate continues among scholars, analysts, and policymakers about

whether foreign aid is an effective means of spurring growth and poverty reduction in Africa;

what types of aid are most effective; and what role other measures, such as debt reduction

and the removal of trade barriers, might play. For a discussion of these issues, see CRS

Report RL32489, Africa: Development Issues and Policy Options, by Raymond W. Copson.

LEGISLATION

P.L. 109-102

Foreign Operations Appropriations, FY2006. For amounts, see above, FY2006 Request

and Congressional Action. The legislation earmarks not less than $50 million for drinking

water supply projects in Africa; permits IMET for the Democratic Republic of Congo and

Nigeria only through regular notification procedures; prohibits debt restructuring assistance

for Sudan unless the Secretary of the Treasury certifies that a democratically elected

government has taken office; prohibits FMF for Sudan; permits aid for Liberia, Sudan or

Zimbabwe only through regular notification procedures; earmarks up to $70 million for aid

to Sudan, but apart from humanitarian assistance, prohibits aid to the Sudanese government

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unless the Secretary of State certifies, among other requirements, that the government is

taking significant steps to disarm government-supported militia in Darfur; earmarks not less

than $17.5 million for the Congo Basin Forest Partnership, including not less than $2.5

million for the protection of great apes; permits assistance to countries where individuals

sought by the Sierra Leone and Rwanda war crimes tribunals are credibly alleged to be living

if the Secretary of State certifies that the governments of such countries are cooperating with

the tribunal, subject to a presidential waiver; requires the United States to oppose loans to

Zimbabwe through international financial institutions, except for humanitarian purposes,

unless the Secretary of State certifies that the rule of law has been restored. Signed by

President Bush on November 14, 2005.

H.R. 2601 (Christopher Smith)

Foreign Relations Authorization, FY2006 and FY2007. Authorizes $1 million for the

provision of four coastal patrol boats to Mozambique; authorizes $5 million in FY2006 and

$7.5 million in FY2007 for establishing obstetric fistula centers; encourages the Overseas

Private Investment Corporation (OPIC) to support investments in financial institutions in

sub-Saharan Africa; authorizes $12 million in each fiscal year to support the restoration of

democratic legitimacy in Zimbabwe; authorizes $4 million for a demonstration insurance

project for famine relief in Ethiopia; requires a report on expanding the Pan-Sahel Initiative

to become a robust counterterrorism program for the entire Saharan region; states sense of

Congress that the chocolate industry, NGOs, and the governments of Ghana and the Côte

d’Ivoire should continue their efforts to monitor child labor in the cocoa industry; states the

sense of Congress that the United States should assist the International Criminal Court in

bringing to justice those accused of genocide, war crimes, or crimes against humanity in

Darfur. Passed the House (351-78) July 20, 2005; received in the Senate July 22.

S. 600 (Lugar)

Foreign Affairs Authorization, FY2006 and FY2007. Authorizes $1.1 billion in

FY2006 and such sums as may be necessary in FY2007 for Development Assistance

worldwide, including the Development Fund for Africa; authorizes $18.85 million for the

African Development Foundation in FY2006 and such sums as may be necessary for

FY2007; affirms U.S. support for the Congo Basin Forest Partnership; authorizes funds to

strengthen judicial capacity in Africa and requires a report from the President on this effort

within six months of passage; authorizes $114.4 million in FY2006 for the Global Peace

Operations (GPOI) program, with an initial emphasis on Africa; authorizes assistance to

expand access to clean water; authorizes $325 million in FY2006 for transition initiatives,

including those requested for Sudan and Ethiopia. Reported in the Senate (S.Rept. 109-35)

March 10, 2005.

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Appendix: Selected Africa Assistance Acronyms

ACOTA

ACRI

ADF

AfDB

AfDF

ATRIP

CIPA

CSH

DA

DFA

ERMA

ESF

FMF

GHAI

IBRD

IDA

IFIs

IGAD

Africa Contingency Operations Training Assistance, successor to ACRI.

Africa Crisis Response Initiative, which trained military units for peacekeeping.

African Development Foundation, U.S.-funded public corporation.

African Development Bank, an Africa-based IFI.

African Development Fund, affiliate of the African Development Bank.

Africa Trade and Investment Program, a USAID initiative.

Contributions to International Peacekeeping Activities

Child Survival and Health Programs Fund.

Development Assistance.

Development Fund for Africa, part of DA, not earmarked in recent years.

Emergency Refugee and Migration Assistance, administered by State Department.

Economic Support Fund, a State Department program for promoting U.S. interests.

Foreign Military Financing, funds equipment purchases.

State Department’s Global AIDS Initiative, part of PEPFAR.

International Bank for Reconstruction and Development, The World Bank.

International Development Association, concessional loan affiliate of IBRD.

International financial institutions.

Inter-governmental Authority on Development, a Djibouti-based organization of

Horn of Africa states.

IMET

International Military Education and Training, a form of military assistance.

MRA

Migration and Refugee Assistance, a State Department program.

NEPAD New Partnership for Africa’s Development, an African initiative.

NGOs

Non-governmental organizations.

OECD

Organization for Economic Cooperation and Development, an organization of

developed countries.

ODA

Official Development Assistance, the OECD’s concept of DA.

OFDA

Office of Foreign Disaster Assistance, a part of USAID.

PCVs

Peace Corps Volunteers

PEPFAR President’s Emergency Plan for AIDS Relief, a Bush Administration initiative.

PKO

Peacekeeping Operations account authorized by Part II, Chapter 6 of the Foreign

Assistance Act.

PVOs

Private and voluntary organizations

SAEDF Southern Africa Enterprise Development Fund, a USAID program.

SMMEs Small, medium, and micro-enterprises.

UNECA United Nations Economic Commission for Africa, headquartered in Addis Ababa,

Ethiopia.

UNDP

United Nations Development Program

USAID U.S. Agency for International Development

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