U.S. Foreign Assistance to Latin America and the Caribbean: Recent Trends and FY2013 Appropriations

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U.S. Foreign Assistance to Latin America and

the Caribbean: Recent Trends and FY2013

Appropriations

-name redactedAnalyst in Latin American Affairs

-name redactedSpecialist in Latin American Affairs

April 5, 2013

Congressional Research Service

7-....

www.crs.gov

R42582

CRS Report for Congress

Prepared for Members and Committees of Congress

U.S. Foreign Assistance to Latin America and the Caribbean

Summary

Geographic proximity has forged strong linkages between the United States and the nations of

Latin America and the Caribbean, with critical U.S. interests in the region encompassing

economic, political, and security concerns. U.S. policymakers have emphasized different strategic

interests in the region at different times, from combating Soviet influence during the Cold War to

advancing democracy and open markets since the 1990s. Current U.S. policy toward the region is

designed to promote economic and social opportunity, ensure citizen security, strengthen effective

democratic institutions, and secure a clean energy future. As part of broader efforts to advance

these priorities, the United States provides Latin American and Caribbean nations with substantial

amounts of foreign assistance. In recent years, the State Department, Foreign Operations, and

Related Programs appropriations measure has been the primary legislative vehicle through which

Congress reviews U.S. assistance and influences executive branch policy toward the region.

Trends in Assistance

Since 1946, the United States has provided over $148 billion (constant 2010 dollars) in assistance

to the region. Funding levels have fluctuated over time, however, according to regional trends and

U.S. policy initiatives. U.S. assistance to the region spiked during the 1960s under President

Kennedy’s Alliance for Progress, and then declined in the 1970s before spiking again during the

Central American conflicts of the 1980s. After another decline during the 1990s, assistance to the

region remained on a generally upward trajectory through the first decade of this century,

reaching its most recent peak in the aftermath of the 2010 earthquake in Haiti. Aid levels for the

region have fallen in each of the past two fiscal years, however, as Congress has sought to trim

the foreign aid budget.

FY2013 Obama Administration Request

The Obama Administration’s FY2013 foreign aid budget request would have continued the recent

downward trend in assistance to Latin America and the Caribbean. The Administration requested

some $1.7 billion for the region to be provided through the State Department and the U.S. Agency

for International Development (USAID). Beyond the assistance provided through the State

Department and USAID, many Latin American and Caribbean nations will continue to receive

additional aid from agencies such as the Department of Defense, the Inter-American Foundation,

the Millennium Challenge Corporation, and the Peace Corps.

Congressional Action

In May 2012, the House and Senate Committees on Appropriations marked up their annual

appropriations bills for the State Department, Foreign Operations, and Related Programs (H.R.

5857 and S. 3241). Funding in the FY2013 House bill was 11.8% lower than the Administration’s

request, and funding in the Senate bill was 4.7% lower than the Administration’s request. It is

unclear how much foreign assistance each of the nations of Latin America and the Caribbean

would have received under the two bills, however, since appropriation levels for individual

countries and programs are generally not specified in the legislation or accompanying reports.

Ultimately no action was taken on these measures. Congress delayed floor consideration of

FY2013 appropriations bills until after the start of the new fiscal year and the November 2012

elections, instead enacting a six-month continuing resolution that would expire in March 2013

(P.L. 112-175). In March 2013, before the continuing resolution expired, Congress approved new

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U.S. Foreign Assistance to Latin America and the Caribbean

legislation (P.L. 113-6) funding federal programs through the end of FY2013. Under that

measure, State Department and Foreign Operations accounts were funded at the same level as in

FY2012 with some exceptions. Funding, however, was also subject to the budget sequestration

cuts set forth in the Budget Control Act of 2011 (P.L. 112-25) and the American Taxpayers Relief

Act (P.L. 112-240). While sequestration reduced State Department-Foreign Operations funding by

about 5%, those reductions will be applied at the account level, and as a result, country-level

allocations for FY2013 are not yet available.

Note: The FY2013 foreign aid statistics cited in this report reflect the Administration FY2013

request for assistance to Latin America and the Caribbean. The discussion and analysis

throughout this report reflect comparisons of the Administration’s FY2013 request with FY2012

aid estimates. Discussion of FY2013 legislative action focuses on bills reported by the House and

Senate Appropriations Committees, but never considered by Congress.

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U.S. Foreign Assistance to Latin America and the Caribbean

Contents

Introduction...................................................................................................................................... 1

Trends in U.S. Assistance to Latin America and the Caribbean ...................................................... 2

Comparison to Other Regions of the World .............................................................................. 3

Types of Assistance ................................................................................................................... 4

Top Recipients ........................................................................................................................... 6

FY2013 Request for Latin America and the Caribbean ................................................................... 7

Mexico and Central America ..................................................................................................... 9

Caribbean................................................................................................................................. 14

Andean Region ........................................................................................................................ 18

Brazil and the Southern Cone .................................................................................................. 21

Regional and Centrally Managed Programs ............................................................................ 23

Other U.S. Agencies Providing Foreign Assistance....................................................................... 26

Department of Defense ............................................................................................................ 26

Inter-American Foundation ..................................................................................................... 28

Millennium Challenge Corporation ......................................................................................... 29

Peace Corps ............................................................................................................................. 31

Potential Issues for Congressional Consideration.......................................................................... 31

Budget Priorities and Constraints ............................................................................................ 31

Inter-Agency and Donor Coordination .................................................................................... 34

Political Will and Program Sustainability ............................................................................... 36

Legislative Action on FY2013 Appropriations .............................................................................. 37

March 2013 Update ................................................................................................................. 39

Figures

Figure 1. U.S. Assistance to Latin America and the Caribbean: FY1946-FY2010 ......................... 2

Figure 2. Regional Distribution of U.S. Assistance: FY2008 and FY2012 ..................................... 4

Figure 3. U.S. Assistance by Account: FY2008-FY2013 ................................................................ 6

Figure 4. Sub-regional Distribution of the FY2013 Request ........................................................... 9

Figure 5. Map of Central America and the Caribbean ................................................................... 14

Figure 6. Map of South America ................................................................................................... 21

Tables

Table 1. U.S. Assistance to Latin America and the Caribbean by Account: FY2008 and

FY2011-FY2013 ........................................................................................................................... 5

Table 2. Top Recipients of U.S. Assistance: FY2008 and FY2011-FY2013 ................................... 7

Table 3. U.S. Assistance to Mexico and Central America: FY2011-FY2013 ................................ 11

Table 4. U.S. Assistance to the Caribbean: FY2011-FY2013 ........................................................ 16

Table 5. U.S. Assistance to the Andean Region: FY2011-FY2013................................................ 19

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U.S. Foreign Assistance to Latin America and the Caribbean

Table 6. U.S. Assistance to Brazil and the Southern Cone: FY2011-FY2013 ............................... 22

Table 7. U.S. Assistance Provided through Regional and Centrally Managed Programs:

FY2011-FY2013 ......................................................................................................................... 26

Table A-1. U.S. Assistance by Country or Program and Account: FY2011 .................................. 40

Table A-2. U.S. Assistance by Country or Program and Account: FY2012 Estimate ................... 42

Table A-3. U.S. Assistance by Country or Program and Account: FY2013 Request .................... 44

Appendixes

Appendix. U.S. Assistance by Country or Program and Account: FY2011-FY2013 .................... 40

Contacts

Author Contact Information........................................................................................................... 45

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U.S. Foreign Assistance to Latin America and the Caribbean

Introduction

Foreign assistance is one of the tools the United States has employed to advance U.S. interests in

Latin America and the Caribbean, with the focus and funding levels of aid programs changing

along with broader U.S. policy goals. Current aid programs reflect the diversity of the countries in

the region. Some countries receive the full range of U.S. assistance as they continue to struggle

with political, socioeconomic, and security challenges. Others, which have made major strides in

democratic governance and economic and social development, have largely outgrown U.S.

assistance but continue to receive some support for new security challenges, such as

strengthening citizen security and combating transnational organized crime. Although U.S.

relations with the nations of Latin America and the Caribbean have increasingly become less

defined by the provision of U.S. assistance as a result of this progress, foreign aid continues to

play an important role in advancing U.S. policy in the region.

Congress authorizes and appropriates foreign assistance to the region and conducts oversight of

aid programs and the executive branch agencies charged with managing them. Current efforts to

reduce budget deficits in the aftermath of the recent global financial crisis and U.S. recession

have triggered closer examination of competing budget priorities. Congress has identified foreign

assistance as a potential area for spending cuts, placing greater scrutiny on the efficiency and

effectiveness of U.S. aid programs. Spending caps and across-the-board cuts that were included in

the Budget Control Act of 2011 (P.L. 112-25)1 could place downward pressure on the aid budget

for the foreseeable future.

This report is an overview of U.S. assistance to Latin America and the Caribbean. It briefly

examines historical and recent trends in aid to the region. It then provides a detailed look at the

Obama Administration’s FY2013 request for State Department and USAID-related assistance to

Latin America and the Caribbean, and describes support provided by other U.S. agencies in order

to draw a more complete picture of U.S. assistance to the region. It also examines key Latin

America and Caribbean funding provisions in the FY2013 foreign aid appropriations bills and

potential issues for congressional consideration.

Report Notes

Bilateral Assistance: Except where otherwise indicated, aid figures in this report refer only to bilateral

assistance administered by the State Department and USAID. U.S. assistance programs in the region that are

administered by the Department of Defense, the Inter-American Foundation, the Millennium Challenge

Corporation, and the Peace Corps are discussed separately (see “Other U.S. Agencies Providing Foreign

Assistance”). Some countries also receive assistance from multilateral organizations that the United States supports

financially, such as the Organization of American States. Multilateral assistance is not discussed in this report.

Acronyms: In this report, the following acronyms correspond to foreign assistance accounts specified in annual

appropriations legislation: DA=Development Assistance; ESF=Economic Support Fund; FMF=Foreign Military

Financing; GHP=Global Health Programs; IMET=International Military Education and Training; INCLE=International

Narcotics Control and Law Enforcement; MRA=Migration and Refugee Assistance; NADR=Nonproliferation Antiterrorism, Demining, and Related programs; and P.L. 480=Food For Peace.

1

For more information on the provisions of the Budget Control Act of 2011, see: CRS Report R41965, The Budget

Control Act of 2011, by (name redacted), (name redacted), and (name redacted).

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U.S. Foreign Assistance to Latin America and the Caribbean

Trends in U.S. Assistance to Latin America and the

Caribbean

The United States has long been a major contributor of foreign assistance to countries in Latin

America and the Caribbean. U.S. assistance to the region spiked in the early 1960s following the

introduction of President Kennedy’s Alliance for Progress, an anti-poverty initiative that sought to

counter Soviet and Cuban influence in the aftermath of Fidel Castro’s 1959 seizure of power in

Cuba. After a period of decline, U.S. assistance to the region increased again following the 1979

assumption of power by the leftist Sandinistas in Nicaragua. Throughout the 1980s, the United

States provided considerable support to the Contras, who sought to overthrow the Sandinista

government, as well as to Central American governments battling leftist insurgencies. U.S. aid

flows declined in the mid-1990s following the dissolution of the Soviet Union, the end of the

Central American civil conflicts, and the spread of electoral democracy throughout the region.

Figure 1. U.S. Assistance to Latin America and the Caribbean: FY1946-FY2010

(Obligations in billions of constant 2010 U.S. dollars)

7

6

5

4

3

2

1

0

Military Assistance

Economic Assistance

Source: USAID, U.S. Overseas Loans and Grants: Obligations and Loan Authorizations, July 1, 1945-September 30,

2010 (Greenbook), April 2012.

Notes: Includes aid obligations from all U.S. government agencies.

U.S. foreign assistance to Latin America and the Caribbean began to increase once again in the

late 1990s and remained on a generally upward trajectory through the past decade. The higher

levels of assistance were partially the result of increased spending on humanitarian and

development assistance. In the aftermath of Hurricane Mitch in 1998, the United States provided

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U.S. Foreign Assistance to Latin America and the Caribbean

extensive humanitarian and reconstruction aid to several countries in Central America. The

establishment of the President’s Emergency Plan for AIDS Relief (PEPFAR) in 2003 and the

Millennium Challenge Corporation (MCC) in 2004 provided a number of countries in the region

with new sources of U.S. assistance.2 More recently, the Obama Administration has placed greater

emphasis on fostering broad-based economic growth in the region and (initially) requested higher

levels of aid for development efforts. The United States also provided significant amounts of

assistance to Haiti in the aftermath of its massive January 2010 earthquake (see Figure 1).

Nevertheless, the vast majority of the increase in U.S. aid though 2010 was directed toward

counternarcotics and security programs. Beginning with President Clinton and the 106th Congress

in FY2000, successive Administrations and Congresses have provided substantial amounts of

foreign aid to Colombia and its Andean neighbors in support of “Plan Colombia”—a Colombian

government initiative to combat drug trafficking, end its long-running internal armed conflict, and

foster development. Spending on counternarcotics and security assistance received another boost

in FY2008 when President Bush joined with his Mexican counterpart to announce the Mérida

Initiative, a package of U.S. counterdrug and anticrime assistance for Mexico and Central

America. In FY2010, the Obama Administration split the Central America portion of Mérida into

a separate Central America Regional Security Initiative (CARSI) and created a similar program

for the countries of the Caribbean known as the Caribbean Basin Security Initiative (CBSI).

After more than a decade of generally increasing aid levels, U.S. assistance to Latin America and

the Caribbean has again begun to decline. U.S. aid to the region has decreased each year since

FY2010, and would continue to do so under the Obama Administration’s FY2013 request.

Comparison to Other Regions of the World3

As the absolute level of U.S. assistance to the countries of Latin America and the Caribbean has

begun to decline, so too has the proportion of U.S. aid going to the region. Between FY2008 and

FY2012, U.S. assistance to Latin America and the Caribbean fell from $2.1 billion to an

estimated $1.9 billion, a 10% decrease. U.S. aid to East Asia and the Pacific and Europe and

Eurasia also declined substantially; however, aid to South and Central Asia increased 46%, aid to

the Middle East increased 27%, and aid to Africa increased by a little over 1% during the same

time period. These variations reflect changes in the world and shifting priorities in U.S. foreign

policy. As economic growth and democratic governance have improved in many Latin American

and former Soviet states in Eastern Europe, the United States has shifted its resources toward

development efforts in Africa and countries of strategic importance to U.S. anti-terrorism

operations, such as Afghanistan and Pakistan. As a result of these trends, U.S. assistance to Latin

America and the Caribbean as a proportion of total U.S. foreign assistance dropped from 10% in

FY2008 to under 8% in FY2012 (see Figure 2).

2

For more information on PEPFAR and the MCC, see CRS Report R42776, The President’s Emergency Plan for AIDS

Relief (PEPFAR): Funding Issues After a Decade of Implementation, FY2004-FY2013, by (name redacted) and

CRS Report RL32427, Millennium Challenge Corporation, by (name redacted).

3

For more information on U.S. foreign assistance globally, see: CRS Report R40213, Foreign Aid: An Introduction to

U.S. Programs and Policy, by (name redacted) and (name redacted).

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Figure 2. Regional Distribution of U.S. Assistance: FY2008 and FY2012

(Percentage of total U.S. assistance)

Source: CRS calculations based on U.S. Department of State, Congressional Budget Justification for Foreign

Operations, Fiscal Year 2010, May 28, 2009; and FY2012 653(a) Foreign Aid Allocations, May 24, 2012.

Notes: Based on appropriated levels. Figures include supplemental appropriations, Iraq and Afghanistan. The

FY2008 appropriations figures are included as a point of comparison since the FY2008 budget was the last to be

approved during the Bush Administration, and the last to be approved before the financial crisis. The FY2012

figures are estimates and may change.

Types of Assistance

U.S. foreign assistance to countries in Latin America and the Caribbean serves a variety of

purposes. Since taking office, the Obama Administration has dedicated a greater proportion of aid

to the region to development and humanitarian assistance programs. Development assistance,

provided primarily through the Development Assistance (DA) and Global Health Programs

(GHP) accounts, seeks to foster sustainable broad-based economic progress and social stability in

developing nations. Such funding is often used for long-term projects in the areas of economic

reform, democracy promotion, basic education, human health, and environmental protection.

Humanitarian assistance is devoted largely to the immediate alleviation of humanitarian

emergencies. This includes most food assistance provided through the Food for Peace (P.L. 480)

account and assistance for refugees and internally displaced persons funded through the

Migration and Refugee Assistance (MRA) account. USAID manages most development and

humanitarian assistance programs; however, the State Department administers the MRA account

and manages a portion of the global health account that mainly addresses HIV/AIDS (under the

PEPFAR program).

Another significant portion of U.S. assistance to the region is provided through the Economic

Support Fund (ESF) account. The primary purpose of ESF is promotion of special U.S. economic,

political, or security interests. The account generally funds programs that are designed to promote

political and economic stability, and in practice, ESF-funded programs are often indistinguishable

from those funded through the development and humanitarian assistance accounts mentioned

above. USAID manages ESF funds in conjunction with the State Department.

In addition to its support for economic, social, and political development efforts, the United States

funds a number of security assistance programs in the region designed to address security

concerns. Funding provided through the International Narcotics Control and Law Enforcement

(INCLE) account supports counternarcotics and civilian law enforcement efforts as well as

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U.S. Foreign Assistance to Latin America and the Caribbean

projects designed to strengthen judicial institutions. U.S. assistance designed to counter global

threats such as terrorism and proliferation of weapons of mass destruction is provided through the

Nonproliferation, Anti-terrorism, De-mining, and Related programs (NADR) account. The United

States also supports Latin American and Caribbean militaries by providing equipment and

personnel training through the Foreign Military Financing (FMF) and International Military

Education and Training (IMET) accounts. The State Department manages the INCLE and NADR

accounts. It also administers the FMF and IMET accounts, which are implemented by the

Department of Defense.4

Table 1. U.S. Assistance to Latin America and the Caribbean by Account: FY2008 and

FY2011-FY2013

(Appropriations in millions of current U.S. dollars)

Account

FY2008 (Actual)

FY2011 (Actual)

FY2012 (Estimate)

FY2013 (Request)

DA

247.3

361.5

333.4

348.9

GHP (State)

145.0

203.3

189.4

175.2

GHP (USAID)

134.2

131.0

105.5

86.8

MRA

25.4

57.1

53.9

47.2

P.L. 480

138.4

95.0

48.0

40.0

ESF

554.2

435.1

465.5

434.2

INCLE

655.4

506.2

593.3

476.5

NADR

16.3

25.2

20.5

13.3

FMF

185.1

84.5

70.3

62.4

IMET

11.6

14.5

15.7

14.4

Total

2,112.9

1,913.3

1,895.4

1,699.0

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Years 2010 and

2013; FY2012 653(a) Foreign Aid Allocations, May 24, 2012; and Fiscal Year 2012 Congressional Spending Plan: Central

America Regional Security Initiative, June 19, 2012.

Notes: The FY2008 appropriations figures are included as a point of comparison since the FY2008 budget was

the last to be approved during the Bush Administration, and the last to be approved before the financial crisis.

The FY2012 figures are estimates and may change.

As total aid levels to the region have declined in recent years, Congress and the Administration

have gradually shifted the balance of the remaining assistance toward development and

humanitarian assistance and away from security assistance (see Figure 3 below). In FY2012,

over $730 million in U.S. aid to the countries of Latin America and the Caribbean was provided

through aid accounts (DA, GHCS, MRA, and P.L. 480) designed to support development and

humanitarian assistance programs. This represents nearly 39% of total U.S. bilateral assistance to

the region, up from 33% in FY2008. Another $466 million, or almost 25% of total assistance, was

provided to the region through the ESF account to support U.S. strategic interests. As a proportion

of aid, ESF remains roughly unchanged from 2008. The United States also provided nearly $700

million in FY2012 through aid accounts (INCLE, NADR, FMF, and IMET) designed to support

4

Additional U.S. assistance provided by the Department of Defense is discussed below; see: “Department of Defense.”

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security efforts in Latin American and Caribbean countries. This represents approximately 37% of

total U.S. bilateral assistance to the region, down from 41% in FY2008.

Figure 3. U.S. Assistance by Account: FY2008-FY2013

(Appropriations in billions of current U.S. dollars)

3.5

IMET

FMF

NADR

3

2.5

INCLE

2

1.5

ESF

1

MRA

P.L. 480

GHP-USAID

GHP-State

0.5

DA

0

FY2008

FY2009

FY2010

FY2011

FY2012 (est.)

FY2013 (req.)

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Years 2010-2013;

FY2012 653(a) Foreign Aid Allocations, May 24, 2012; and Fiscal Year 2012 Congressional Spending Plan: Central

America Regional Security Initiative, June 19, 2012,

Notes: The increase in aid in FY2010 is mostly attributable to a large supplemental assistance package for Haiti

in the aftermath of the January 2010 earthquake. The FY2012 figures are estimates and may change.

Top Recipients

Haiti, Colombia, and Mexico have been the top regional recipients of U.S. foreign aid in recent

years. The United States has provided Haiti with high levels of aid for many years as a result of

the country’s significant development challenges. In the immediate aftermath of the massive

earthquake that struck Haiti in January 2010, the United States provided the country with

extensive humanitarian relief. Since then, U.S. assistance has focused on the establishment of

long-term development in key sectors such as energy, infrastructure, basic services, and

governance. As noted above, Colombia has received considerable levels of aid since FY2000

through “Plan Colombia.” U.S. aid to Colombia has been on a downward trajectory in recent

years, however, as the security situation in Colombia has improved, the country has begun taking

on financial and operational responsibility for the programs, and the United States has shifted the

emphasis of its assistance away from costly military equipment toward economic and social

development efforts. U.S. assistance for Mexico is designed primarily to support the country’s

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U.S. Foreign Assistance to Latin America and the Caribbean

fight against transnational criminal organizations. As in Colombia, aid levels have declined

somewhat as the focus of U.S. assistance has shifted away from the provision of security

equipment to rule of law programs. In FY2012, the United States provided an estimated $357

million for Haiti, $379 million for Colombia, and $330 million for Mexico. Together, these

countries received over 56% of all aid to the region (see Table 2 below).

Table 2. Top Recipients of U.S. Assistance: FY2008 and FY2011-FY2013

(Appropriations in millions of current U.S. dollars)

Country

FY2008 (Actual)

FY2011 (Actual)

FY2012 (Estimate)

FY2013 (Request)

Haiti

378.0

380.3

357.2

340.0

Colombia

551.3

453.2

379.0

331.8

Mexico

405.9

178.1

330.1

269.5

Guatemala

62.9

110.2

95.2

93.6

Peru

91.0

96.6

82.6

73.7

Honduras

40.5

56.0

57.0

58.2

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Years 2010 and

2013; and FY2012 653(a) Foreign Aid Allocations, May 24, 2012.

Notes: The FY2008 appropriations figures are included as a point of comparison since the FY2008 budget was

the last to be approved during the Bush Administration, and the last to be approved before the financial crisis.

The FY2012 figures are estimates and may change.

FY2013 Request for Latin America and the

Caribbean5

The Obama Administration’s FY2013 foreign aid budget request would continue the recent

downward trend in assistance to Latin America and the Caribbean. The Administration has

requested approximately $1.7 billion for the region. If Congress appropriates funding at the

requested levels, Latin America and the Caribbean would receive about 10% less assistance than

the region received in FY2012 and about 11% less than the region received in FY2011. In

comparison, the Administration’s budget request calls for a 0.1% increase over FY2012 levels for

foreign operations worldwide. The proposed cuts for the region are widespread, with funding for

every account—with the exception of Development Assistance—decreasing as compared to

FY2012. Brazil, Venezuela, Argentina, and Guyana would see some of the largest cuts in

percentage terms, while Colombia and Mexico would see the largest absolute declines in

assistance. El Salvador, which was selected by the Administration for its “Partnership for Growth

Initiative,”6 is the only country in the region that would receive a substantial increase in aid.

5

Information in this section is drawn from: U.S. Department of State, FY2013 Congressional Budget Justification,

Foreign Operations, Annex: Regional Perspectives, April 2012; and FY2012 653(a) Foreign Aid Allocations, May 24,

2012.

6

The principles behind the Partnership for Growth Initiative are to (1) focus on broad-based economic growth; (2)

select countries with demonstrated performance and political will; (3) use joint decision-making and prioritization of

activities; (4) support catalytic policy change and institutional reform; (5) leverage U.S. government engagement for

maximum impact; and (6) emphasize partnership and country ownership.

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Even as total aid to the region would decline, the Administration’s request would continue the

gradual shift in emphasis of U.S. aid to the region away from security assistance toward

development and humanitarian assistance. Taken together, accounts that provide development or

humanitarian assistance would receive over $698 million, or 41% of the total aid request for the

region in FY2013. Nevertheless, the request represents a 4% decrease in total funding for

development and humanitarian assistance compared to FY2012, and a nearly 18% decrease

compared to FY2011. The Obama Administration has also requested some $434 million to be

provided to the region through the Economic Support Fund (ESF) account. This would be a 7%

decline from FY2012, but roughly equal to the amount provided to Latin America and the

Caribbean in FY2011. Funding for ESF represents 26% of the Administration’s FY2013 request

for the region. If Congress fully funds the request, $567 million, or 33% of U.S. aid, would go to

accounts that provide security assistance. U.S. security assistance for Latin America and the

Caribbean would decrease by about 19% compared to FY2012 and 10% compared to FY2011

(see Table 1 above).

Looking at the distribution of assistance within the Western Hemisphere, 36% of the

Administration’s request is dedicated to Mexico and Central America. This sub-region has

become a greater focus of U.S. aid once again as a result of deteriorating security situations in

several of the countries and improving conditions elsewhere in the hemisphere. Another 29% of

U.S. aid to the region would go to the Caribbean, while 27% would go to the Andean nations of

South America. Brazil and the countries of the Southern Cone of South America, which are some

of the most developed in the hemisphere, would receive just 1% of U.S. assistance for the region.

The final 7% of the request is dedicated to regional programs and accounts that span more than

one sub-region (see Figure 4 below).

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Figure 4. Sub-regional Distribution of the FY2013 Request

(Percentage of total U.S. assistance to the hemisphere)

Regional and

Centrally-Managed

Brazil &

Programs

Southern Cone

7%

1%

Mexico and Central

America

36%

Andean Region

27%

Caribbean

29%

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012.

Notes: “Regional and Centrally-Managed Programs” include: Migration and Refugee Assistance, the USAID Latin

America and Caribbean Regional program, the USAID South America Regional program, and the State Western

Hemisphere Regional program—excluding the funds allocated to the Central America Regional Security Initiative

(CARSI) and the Caribbean Basin Security Initiative (CBSI). The funds for CARSI, CBSI, and the USAID Central

America Regional program are included in the figures of the corresponding sub-regions.

Mexico and Central America

Background. Taking into account obligations from all U.S. agencies, the United States provided

Mexico and the countries of Central America7 with foreign assistance worth $27.5 billion in

constant 2010 U.S. dollars (or $18.9 billion in current, or non-inflation-adjusted, dollars) between

FY1980 and FY2010.8 Over 91% of the aid provided was in the form of economic assistance,

with the remainder in military assistance. El Salvador accounted for 33% of the U.S. assistance

provided over the 31-year period, followed by Honduras (17%), Guatemala (13%), Mexico

(11%), Costa Rica (10%), Nicaragua (9%), Panama (5%), and Belize (1%).

7

For the purposes of this report, "Central America" includes all seven countries of the isthmus: Belize, Costa Rica, El

Salvador, Guatemala, Honduras, Nicaragua, and Panama.

8

All U.S. aid statistics and percentages for FY1980-FY2010 are drawn from the “Green Book” maintained by USAID

online, and include all U.S. economic and military assistance, using constant 2010 U.S. dollar amounts of obligated

(committed) funds from all agencies. See: USAID, U.S. Overseas Loans and Grants: Obligations and Loan

Authorizations, July 1, 1945 - September 30, 2010, available at: http://gbk.eads.usaidallnet.gov/index.html.

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U.S. Foreign Assistance to Latin America and the Caribbean

U.S. assistance to the sub-region has declined in each decade since the 1980s. As noted above,

Central America was a major priority for U.S. foreign aid during the 1980s as the United States

sought to combat Soviet influence and support allied governments fighting leftist insurgencies.

The United States provided Mexico and Central America with $12.8 billion (constant 2010 U.S.

dollars) in assistance over the course of the decade—43% of which went to El Salvador.

Assistance declined considerably during the 1990s as the Cold War and civil conflicts came to an

end. Although several countries in the sub-region received substantial amounts of U.S. assistance

for reconstruction in the aftermath of Hurricane Mitch in 1998, total aid for the 1990s amounted

to $7.6 billion in 2010 U.S. dollars, a 41% decline from the previous decade.

U.S. aid to Central America and Mexico declined again between FY2000 and FY2009 to about

$5.9 billion in 2010 U.S. dollars. Despite the decline, several countries in the sub-region

benefited from new aid initiatives. El Salvador, Honduras, and Nicaragua were awarded MCC

compacts, and Mexico—which had not been a major recipient of U.S. assistance—began

receiving large amounts of aid through the anticrime and counterdrug program known as the

Mérida Initiative. In FY2010, Mexico and Central America received almost $1.3 billion (constant

2010 U.S. dollars) in U.S. assistance, 57% of which went to Mexico.

FY2013 Appropriations Request. Looking more recently at foreign aid appropriated for the

State Department and USAID through the annual State Department and Foreign Operations

appropriations measure, Mexico and the countries of Central America received $532.4 million in

current U.S. dollars in assistance in FY2011 and an estimated $696.2 million in FY2012. The

Administration’s FY2013 request for the sub-region is $619.8 million, a $76.4 million (11%)

decrease from the FY2012 estimate (see Table 3 below).

Under the FY2013 request, Mexico would receive $269.5 million in U.S. assistance. This would

be a $60.6 million (18%) decrease compared to the FY2012 estimate. Nevertheless, Mexico

would still account for over 45% of aid to the sub-region as a result of substantial U.S. support for

its efforts to combat transnational organized crime. According to Assistant Secretary of State for

Western Hemisphere Affairs Roberta Jacobson, the decline in U.S. assistance to Mexico is a result

of a shift in the Mérida Initiative from providing expensive pieces of security equipment, like

helicopters, to providing less costly training and capacity building programs.9

In FY2013, U.S. assistance would provide technology, training, and equipment to strengthen

Mexico’s law enforcement entities at the federal and state levels, and combat transnational

criminal organizations. U.S. assistance would also support a variety of justice sector reform

efforts, such as the ongoing transition from a written, inquisitorial system to an oral, adversarial

system. Support for the Mexican military would include human rights training and equipment to

improve intelligence and communications capabilities. Small amounts of aid would support

partnerships with Mexican universities, institutional reforms designed to increase private sector

competitiveness, and climate change mitigation efforts. Since FY2008, Congress has required the

State Department to withhold 15% of FMF and INCLE assistance for Mexico until certain human

rights conditions are met.10

9

Roberta S. Jacobson, Assistant Secretary of State for Western Hemisphere Affairs, testimony before the U.S.

Congress, House Committee on Foreign Affairs, Subcommittee on the Western Hemisphere, Western Hemisphere

Budget Review 2013: What Are U.S. Priorities?, 112th Cong., 2nd sess., April 25, 2012.

10

For more detailed information on Mexico and U.S. policy, see CRS Report R42917, Mexico’s Peña Nieto

Administration: Priorities and Key Issues in U.S.-Mexican Relations, by (name redacted); CRS Report R41349,

(continued...)

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U.S. Foreign Assistance to Latin America and the Caribbean

Table 3. U.S. Assistance to Mexico and Central America: FY2011-FY2013

(Appropriations in millions of current U.S. dollars)

Country/Program

FY2011 (Actual)

FY2012 (Estimate)

FY2013 (Request)

Mexico

178.1

330.1

269.5

Belize

0.4

0.7

1.0

Costa Rica

0.7

0.7

1.8

El Salvador

29.8

29.2

41.8

Guatemala

110.2

95.2

93.6

Honduras

56.0

57.0

58.2

Nicaragua

24.1

13.5

13.1

Panama

3.0

2.8

3.7

USAID Central America

Regional

28.6

32.1

29.7

CARSI

101.5

135.0

107.5

Central America Subtotal

354.2

366.1

350.3

Total Mexico and

Central America

532.4

696.2

619.8

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012; FY2012 653(a) Foreign Aid Allocations, May 24, 2012; and Fiscal Year 2012 Congressional Spending Plan:

Central America Regional Security Initiative, June 19, 2012,

Notes: CARSI is funded under the State Department’s Western Hemisphere Regional program. The FY2012

figures are estimates and may change.

Like Mexico, the countries of the so-called “Northern Triangle” of Central America—Guatemala,

Honduras, and El Salvador—face considerable challenges in combating transnational organized

crime. As lower-middle-income developing economies, however, they have additional

development problems to address and fewer resources with which to do so. Most security

assistance for these countries is provided through the Central America Regional Security

Initiative (CARSI), which is discussed below.

Guatemala would receive about $93.6 million in U.S. assistance under the FY2013 request, a

$1.6 million decrease compared to the FY2012 estimate. Nearly 60% of the request is in

Development Assistance, which would fund a wide variety of projects. These include efforts to

build trade capacity, support environmental conservation, strengthen the education system,

combat trafficking in persons, and promote the rule of law and good governance. Aid to improve

food security and increase access to quality health care constitutes another 36% of the request for

Guatemala. The final 4% of U.S. assistance requested for FY2013 would provide training and

equipment to the security forces to improve their capabilities and control the borders. There have

been conditions on U.S. assistance to the Guatemalan military since 2005, when a 15-year

(...continued)

U.S.-Mexican Security Cooperation: The Mérida Initiative and Beyond, by (name redacted) and (name redacted);

and CRS Report RL32934, U.S.-Mexico Economic Relations: Trends, Issues, and Implications, by (name redac

ted).

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U.S. Foreign Assistance to Latin America and the Caribbean

suspension of such aid was lifted. U.S. assistance would also continue to support the International

Commission Against Impunity in Guatemala (CICIG by its Spanish acronym).11

Honduras would receive $58.2 million in U.S. assistance under the FY2013 request, a $1.2

million increase over FY2012. The vast majority of aid (84%) is requested under the DA account

to support efforts to decentralize governance and improve service delivery, ensure transparency in

the November 2012 primary elections, improve the quality of the education system, and

implement a country-led food security strategy. Health assistance would support Honduras’s

national HIV/AIDS strategy and efforts to reform the national health system to improve quality

and effectiveness. Training and equipment for the Honduran security forces would seek to

improve civil-military relations and strengthen government control over remote areas of the

country. The State Department is required to withhold 20% of the assistance appropriated in

FY2012 for the Honduran security forces until certain human rights conditions are met.12

Under the FY2013 request, El Salvador would receive $41.8 million in U.S. assistance. This

would be an increase of $12.6 million, or 43%, over the FY2012 estimate. El Salvador is one of

four countries worldwide selected to participate in the Obama Administration’s Partnership for

Growth initiative,13 which seeks to foster sustained economic growth and development in topperforming low-income countries by analyzing constraints on growth and targeting assistance to

overcome them. A July 2011 bi-national study identified crime and insecurity and a lack of

competitiveness in the tradable sector as the two greatest constraints on growth in El Salvador.14

About 93% of U.S. assistance for El Salvador in FY2013 was requested through the DA account.

This funding would support the implementation of security and justice sector reforms as well as

government and civil society efforts to reduce corruption and prevent crime. It would also support

efforts to strengthen the basic and higher education systems, and improve public administration

and private sector competitiveness. Additional assistance would provide training and equipment

to the Salvadoran security forces to strengthen their control over land and maritime borders and

improve their counternarcotics and humanitarian relief capabilities.15

U.S. assistance to Nicaragua would decrease by $390,000 under the FY2013 request, and would

remain almost 46% lower than it was in FY2011. U.S. aid to the country has declined

substantially in recent years as a result of difficult relations with President Daniel Ortega and

concerns about the erosion of democratic governance. Almost 92% of the request for Nicaragua

would be funded through the DA account. The majority of these funds would be directed toward

democracy promotion projects, such as providing training and technical assistance to emerging

democratic leaders, civil society groups, independent media, and local governments. Other DA

funds would be used to promote market-oriented economic policies and improve resource

11

CICIG is a U.N.-backed entity that was established to support Guatemalan institutions in the identification,

investigation, and prosecution of illegal security groups and clandestine organizations, some of which have been tied,

directly or indirectly, to the Guatemalan state.

For more detailed information on Guatemala and U.S. policy, see CRS Report R42580, Guatemala: Political, Security,

and Socio-Economic Conditions and U.S. Relations, by (name redacted).

12

For more detailed information on Honduras and U.S. policy, see: CRS Report RL34027, Honduras-U.S. Relations,

by (name redacted).

13

The other countries selected for the initiative are Ghana, Philippines, and Tanzania.

14

U.S. Department of State, Partnership for Growth: El Salvador Constraints Analysis, July 19, 2011, available at:

http://photos.state.gov/libraries/elsavador/92891/PFG/ES%20Constraints_Analysis.pdf.

15

For more detailed information on El Salvador and U.S. policy, see: CRS Report RS21655, El Salvador: Political and

Economic Conditions and U.S. Relations, by (name redacted).

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U.S. Foreign Assistance to Latin America and the Caribbean

management. Some U.S. assistance would be provided to the Nicaraguan military, which the State

Department maintains has remained an independent, non-political force, and a strong

counternarcotics partner.

The USAID Missions in Belize and Costa Rica closed in 1996, and the USAID Mission in

Panama is expected to close in September 2012.16 Nevertheless, these countries continue to

receive small amounts of U.S. assistance. Together, they would receive $6.4 million under the

FY2013 request, a $2.3 million (56%) increase over the FY2012 estimate. This assistance

includes equipment and training for the countries’ respective security forces that is designed to

enhance their abilities to combat drug trafficking and other potential security threats. Belize,

Costa Rica, and Panama also benefit from the regional programs discussed below.17

In addition to these bilateral country assistance programs, the FY2013 request includes $29.7

million for USAID’s Central America Regional program. The regional program receives

funding through the DA and GHP accounts, and supports Central American priorities. Nearly

55% of the assistance provided through the regional program would support programs to prevent

HIV/AIDS transmission and provide care and treatment for those living with the disease in

Central America. The regional program also supports trade capacity building efforts designed to

improve Central American nations’ abilities to take advantage of the opportunities offered by the

Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR).18

Environmental initiatives, such as climate change mitigation and coastal and marine resource

management projects, receive funding through the regional program as well.

The Central America Regional Security Initiative (CARSI) would receive $107.5 million

under the FY2013 request. CARSI was originally created in FY2008 as part of the Mérida

Initiative, but was reformulated as a separate program in FY2010. Congress appropriated $496.5

million for the initiative between FY2008 and FY2012. CARSI funds a variety of activities

designed to support U.S. and Central American security objectives. U.S. agencies provide partner

nations with equipment, technical assistance, and training to improve narcotics interdiction and

disrupt criminal networks that operate in the region as well as in the United States. CARSI also

provides support for Central American law enforcement and justice sector institutions, identifying

deficiencies and building their capacities to ensure the safety and security of the citizens of the

region. Additionally, CARSI supports prevention efforts that seek to reduce drug demand and

provide at-risk youth with educational, vocational, and recreational opportunities. CARSI is

funded through the State Department’s Western Hemisphere Regional program. Some CARSI

assistance is provided to the nations of Central America bilaterally and some supports regional

projects. It is unclear how much CARSI funding each nation receives since the State Department

has not provided a public breakdown of CARSI funding by country.19

16

Mark Feierstein, USAID Assistant Administrator for Latin America and the Caribbean, “A New Approach for a

Changing Hemisphere,” USAID Frontlines, March/April 2012.

17

For more detailed information on Panama and U.S. policy, see: CRS Report RL30981, Panama: Political and

Economic Conditions and U.S. Relations, by (name redacted).

18

For more information on CAFTA-DR, see: CRS Report R42468, The Dominican Republic-Central America-United

States Free Trade Agreement (CAFTA DR): Developments in Trade and Investment, by (name redacted).

19

For more information on CARSI, see: CRS Report R41731, Central America Regional Security Initiative:

Background and Policy Issues for Congress, by (name redacted) and (name redacted).

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U.S. Foreign Assistance to Latin America and the Caribbean

Figure 5. Map of Central America and the Caribbean

Source: CRS

Notes: Central America is pictured in light green and the Caribbean is pictured in dark green.

Caribbean

Background. From FY1980 through FY2010, the United States provided almost $14 billion in

assistance in constant 2010 U.S. dollars (or about $10.4 billion in current or non-inflationadjusted dollars) to the Caribbean, a diverse region that includes some of the hemisphere’s richest

and poorest nations.20 The overwhelming majority of aid, about 95%, was economic assistance,

while the balance was military assistance. In the 1980s, aid to the region amounted to about $5.5

billion in 2010 U.S. dollars, with the majority going to Jamaica, the Dominican Republic, and

Haiti. Aid to the region also included a significant program for Eastern Caribbean countries in the

aftermath of the 1983 U.S.-led military intervention in Grenada. In the 1990s, U.S. assistance to

the Caribbean declined to about $3 billion in 2010 dollars. In that decade, Haiti’s share of U.S.

aid to the Caribbean increased to about 46% of the total, followed by Jamaica (22%) and the

Dominican Republic (15%). From FY2000 through FY2009, U.S. assistance to the Caribbean

increased to almost $3.9 billion in 2010 dollars, with assistance to Haiti accounting for 52% of

20

The Caribbean includes some 13 island nations and 2 nations geographically located on the north coast of South

America, Guyana and Suriname, that have characteristics more common of Caribbean nations and participate in

Caribbean regional organizations. Located in Central America, English-speaking Belize also participates in Caribbean

regional organizations, but is the beneficiary of regional U.S. assistance programs for Central America. Assistance to

the country is therefore included in the section of this report covering Mexico and Central America. All U.S. aid

statistics and percentages for FY1980-FY2010 are drawn from the “Green Book” maintained by USAID online, and

include all U.S. economic and military assistance, using constant 2010 U.S. dollar amounts of obligated (committed)

funds from all agencies. See: USAID, U.S. Overseas Loans and Grants: Obligations and Loan Authorizations, July 1,

1945 - September 30, 2010, available at: http://gbk.eads.usaidallnet.gov/index.html.

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U.S. Foreign Assistance to Latin America and the Caribbean

the total, followed by the Dominican Republic (almost 13%) and Jamaica (10%). During this

period, HIV/AIDS assistance to the region increased considerably, especially to Haiti and

Guyana, two nations that were designated as focus countries under PEPFAR. The United States

also provided significant assistance for hurricane recovery and reconstruction to several

Caribbean countries, especially Grenada, Haiti, and Jamaica.

Aid to the region increased significantly in FY2010 to almost $1.7 billion (almost three times the

$586 million obligated the previous year) in large part due to Haiti’s devastating January 2010

earthquake that killed an estimated 316,000 people.21 A new Caribbean Basin Security Initiative

(CBSI), also begun in FY2010, increased assistance to most Caribbean countries to support

efforts to reduce illicit trafficking, advance citizen security, and promote social justice.

FY2013 Appropriations Request. Looking more recently at foreign aid appropriated for the

State Department and USAID through the annual State Department and Foreign Operations

appropriations measure, U.S. assistance to the Caribbean amounted to $572 million in current

U.S. dollars in FY2011 and an estimated $522 million in FY2012. The Administration’s FY2013

request is for almost $492 million, a decline of about $31 million or 5.9% from the previous year

(see Table 4). Looking at FY2011 and FY2012 combined, Haiti continued to dominate U.S.

funding to the Caribbean, accounting for about two-thirds of all assistance. Comparatively

smaller assistance programs were for the regional CBSI program, the Dominican Republic,

Eastern Caribbean countries, and Cuba.

For FY2013, Haiti would account for the lion’s share—over two-thirds—of U.S. assistance to the

Caribbean. Support for Haiti’s reconstruction will likely continue to be a major focus of U.S.

assistance to the Caribbean over the next several years as the country rebuilds after the

earthquake. Even before the disaster, efforts to alleviate Haiti’s persistent poverty were a top

congressional concern, as were efforts to promote long-term stability and security and strengthen

democratic processes. The U.S. government’s post-earthquake strategy focuses on four pillars:

infrastructure and energy, food and economic security, health and other basic services, and

governance and rule of law.

Overall management of the assistance program for Haiti is handled by Thomas C. Adams,

appointed by Secretary of State Clinton in September 2010 as Special Coordinator for Haiti.

USAID is the lead U.S. agency providing assistance to Haiti, and works closely with other U.S.

agencies, the Haitian government, other bilateral donors, international organizations, and

nongovernmental organizations (NGOs) to coordinate ongoing efforts. More than 1.5 million

Haitians were living in tent camps in the aftermath of the earthquake. As of early 2012, about

550,000 people, or 36% of the original number, remained in displaced camps.22 U.S. and

international efforts have also focused on responding to a cholera outbreak that began in the fall

of 2010 and killed almost 7,000 Haitians as of early 2012, with almost half a million people

affected overall.23 One of the general goals of U.S. assistance is to help stimulate economic

growth and create opportunities outside the capital of Port-au-Prince.24

21

USAID, “Haiti – Earthquake and Cholera, Fact Sheet #3, FY2012,” December 12, 2011.

U.S. Department of State, Office of the Haiti Special Coordinator, “Shelter: Two Year Fast Facts on the U.S.

Government’s Work in Haiti,” December 28, 2011.

23

U.S. Department of State, Office of the Haiti Special Coordinator, “Cholera: Two Year Fast Facts on the U.S.

Government’s Work in Haiti,” December 28, 2011.

24

For more detailed information on Haiti and U.S. policy, see: CRS Report R42559, Haiti Under President Martelly:

(continued...)

22

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U.S. Foreign Assistance to Latin America and the Caribbean

Table 4. U.S. Assistance to the Caribbean: FY2011-FY2013

(Appropriations in millions of current U.S. dollars)

Country/Program

FY2011 (Actual)

FY2012 (Estimate)

FY2013 (Request)

Bahamas

0.2

0.2

0.2

Barbados and Eastern

Caribbean

32.3

34.2

35.2

Cuba

20.0

20.0

15.0

Dominican Republic

37.0

30.1

29.8

Guyana

16.9

10.8

7.0

Haiti

380.3

357.2

340.0

Jamaica

7.6

5.7

5.4

Suriname

0.3

0.2

0.2

Trinidad and Tobago

0.3

0.2

0.2

CBSI

77.4

64.0

59.0

Total

572.2

522.7

492.0

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012; and FY2012 653(a) Foreign Aid Allocations, May 24, 2012; and FY2012 653(a) Foreign Aid Allocations, May

24, 2012.

Notes: CBSI is funded under the State Department’s Western Hemisphere Regional program. The FY2012

figures are estimates and may change.

Beyond Haiti, the FY2013 foreign aid request includes bilateral programs for the Bahamas,

Barbados and Eastern Caribbean countries, Cuba, the Dominican Republic, Guyana, Jamaica,

Suriname, and Trinidad and Tobago. U.S. assistance would support efforts to combat HIV/AIDS

in most countries in the Caribbean, where HIV prevalence is estimated at about 1%, higher than

in any other region outside of sub-Saharan Africa.25 Small amounts of IMET would also support

the professionalization of security forces and civilian defense officials throughout the region and

provide training for defense and maritime security forces. Among the largest of these Caribbean

programs in the FY2013 request are the following:

•

In the Eastern Caribbean, a $35.2 million program based out of Bridgetown,

Barbados, would support assistance activities for Barbados and the six countries

of the Organization of Eastern Caribbean States (OECS): Antigua and Barbuda,

Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the

Grenadines. Almost two-thirds of the aid would support HIV/AIDS programs in

the Eastern Caribbean. The USAID Mission based out of Barbados would also

manage HIV/AIDS programs in Guyana, Suriname, and Trinidad and Tobago.

DA would support efforts to improve juvenile justice systems, job opportunities

for youth, and global climate change programs.

(...continued)

Current Conditions and Congressional Concerns, by (name redacted).

25

UNAIDS, Joint United Nations Programme on HIV/AIDS, “Global Report, Fact Sheet, Caribbean,” 2010, available

at: http://www.unaids.org/documents/20101123_FS_carib_em_en.pdf.

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U.S. Foreign Assistance to Latin America and the Caribbean

•

In the Dominican Republic, over half of the $29.8 million FY2013 request

would support global health activities focused on HIV/AIDS and maternal and

child health, while DA would fund a variety of projects to strengthen government

institutions and civil society, improve the quality of basic education, improve the

competitiveness of small business, and protect the country’s natural resources

and fragile ecosystems.

•

For Cuba, the Administration is requesting $15 million to continue to provide

humanitarian assistance to political prisoners and their families, strengthen

Cuba’s independent civil society, and promote the flow of uncensored

information to, and within, Cuba. From FY2009 to FY2012, Congress had

appropriated $20 million in each fiscal year for such assistance, although

congressional holds held up the provision of assistance for several months in

2010 and 2011 because of concerns about the effectiveness and conduct of the

program. A USAID government subcontractor, Alan Gross, who had been

distributing communications equipment to Jewish organizations in Cuba, has

been imprisoned in Cuba since December 2009. Gross was convicted in March

2011 of taking “actions against the independence and territorial integrity of the

state,” and sentenced to 15 years in prison. U.S. officials and many Members of

Congress have repeatedly called for Gross’s unconditional release.26

•

In Guyana, the FY2013 bilateral request is for almost $7 million, reflecting a

downward trend in assistance over the past several years as the country’s efforts

to combat HIV/AIDS have improved, including access to HIV prevention,

treatment, and care services for persons living with HIV/AIDS. USAID’s

Mission in Guyana will be closing for budgetary reasons, so the FY2013 program

for Guyana will be managed by USAID’s Mission in Barbados.

•

In Jamaica, the FY2013 bilateral request is for $5.4 million (roughly similar to

that being provided in FY2012) with assistance designed to support basic

education and efforts to adapt to the impact of global climate change. The

country also would receive Caribbean regional HIV/AIDS assistance.

In addition to these bilateral assistance programs, the FY2013 request includes $59 million for

continuation of the Caribbean Basin Security Initiative that supports activities throughout the

Caribbean to reduce illicit trafficking, advance public safety and security, and promote social

justice. The Obama Administration developed the CBSI in 2009 and 2010 through a process of

dialogue with Caribbean nations. Funding for the CBSI has amounted to $203 million since

FY2010, with almost $62 million in FY2010, $77 million in FY2011, and an estimated $64

million in FY2012. Funding for the program is part of the State Department’s Western

Hemisphere Regional program, and has included assistance in the following five areas: maritime

and aerial security cooperation; law enforcement capacity building; border/port security and

firearms interdiction; justice sector reform; and crime prevention and at-risk youth.27 Since the

State Department does not present a breakdown of CBSI assistance by country in its annual

congressional budget justification, it is difficult to determine the overall level of aid that a

26

For more detailed information on Cuba and U.S. policy, see: CRS Report R43024, Cuba: U.S. Policy and Issues for

the 113th Congress, by (name redacted).

27

U.S. Department of State, “The Caribbean Basin Security Initiative,” Factsheet, November 2, 2011.

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U.S. Foreign Assistance to Latin America and the Caribbean

Caribbean country is receiving or is expected to receive. For a number of Caribbean nations, the

level of U.S. assistance received under the CBSI likely surpasses regular bilateral aid levels.28

Andean Region

Background. From FY1980 through FY2010, the United States provided about $25 billion in

assistance in constant 2010 U.S. dollars (or about $20 billion in current or non-inflation-adjusted

dollars) to the countries of the Andean region of South America—Bolivia, Colombia, Ecuador,

Peru, and Venezuela (see Figure 6)—with about 82% of that in economic assistance and the

balance in military aid. Colombia accounted for 45% of the assistance in the three-decade period,

followed by Peru (26%), Bolivia (21%), Ecuador (8%), and Venezuela (almost 1%).29 In the

1980s, assistance amounted to about $3.6 billion in 2010 U.S. dollars, with assistance to Peru

accounting for about 42% of the total followed by aid to Bolivia (almost 29%), Ecuador (18%),

and Colombia (10%). During this period, development and food assistance comprised the

majority of aid to the region.

Since the 1990s, U.S. assistance to the Andean region has focused on narcotics-related assistance

with the goal of reducing the flow of illicit drugs to the United States. In the 1990s, assistance

increased to almost $6 billion in 2010 U.S. dollars, with aid to Peru accounting for 37% followed

by aid to Bolivia (33%), Colombia (22%), and Ecuador (almost 6%). From FY2000 through

FY2009, aid to the Andean region more than doubled from the previous decade to about $14.3

billion in 2010 dollars. Colombia accounted for the lion’s share of assistance during this decade,

almost $8.8 billion in 2010 dollars (61%), as the United States supported Plan Colombia with a

focus on drug eradication and interdiction, alternative development, and support for the

Colombian military in its struggle against leftist guerrillas and rightist paramilitaries. Peru and

Bolivia also received significant amounts of aid, $2.5 billion and $2.1 billion respectively,

although assistance to both countries declined annually during the second half of the decade. In

FY2010, aid to the Andean region amounted to $1.2 billion, with Colombia accounting for almost

70% of the aid, followed by Peru, Bolivia, and Ecuador.

FY2013 Appropriations Request. Looking more recently at aid appropriated through the annual

State Department and Foreign Operations measure, U.S. assistance to the Andean region in

current U.S. dollars amounted to $621 million in FY2011 and an estimated $516 million in

FY2012, while the FY2013 request is for $452 million (see Table 5). Looking at FY2011 and

FY2012 combined, assistance to Colombia accounted for 73% of aid to the Andean region.

For the FY2013 request, assistance to the region would decrease about 12% compared to the

FY2012 estimate, with Colombia accounting for nearly three-quarters of the decline in dollar

terms. With the exception of Ecuador, which would receive an increase of about 4%, assistance to

the other Andean countries would, compared to FY2012 estimates, decline as follows—Bolivia

(22%), Colombia (12%), Peru (11%), and Venezuela (50%).

28

For additional information, see the section on the CBSI in CRS Report R41215, Latin America and the Caribbean:

Illicit Drug Trafficking and U.S. Counterdrug Programs.

29

All U.S. aid statistics and percentages for FY1980-FY2010 are drawn from the “Green Book” maintained by USAID

online, and include all U.S. economic and military assistance, using constant 2010 U.S. dollar amounts of obligated

(committed) funds from all agencies. See: USAID, U.S. Overseas Loans and Grants: Obligations and Loan

Authorizations, July 1, 1945 - September 30, 2010, available at: http://gbk.eads.usaidallnet.gov/index.html.

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U.S. Foreign Assistance to Latin America and the Caribbean

Table 5. U.S. Assistance to the Andean Region: FY2011-FY2013

(Appropriations in millions of current U.S. dollars)

Country

FY2011 (Actual)

Bolivia

41.9

28.3

22.2

Colombia

453.2

379.0

331.8

Ecuador

24.3

20.5

21.3

Peru

96.6

82.6

73.7

Venezuela

5.0

6.0

3.0

621.0

516.4

452.0

Total

FY2012 (Estimate)

FY2013 (Request)

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012; and FY2012 653(a) Foreign Aid Allocations, May 24, 2012.

Notes: The FY2012 figures are estimates and may change.

The FY2013 request of $332 million for Colombia accounts for the majority, about 73%, of U.S.

assistance that would go to the Andean region. The $47 million reduction in assistance from

FY2012 is a reflection of progress that Colombia has made in improving its security situation and

its ability to fund programs that had previously been funded by the United States. As noted by

Assistant Secretary of State for International Narcotics and Law Enforcement Affairs William

Brownfield, the decline in assistance from previous years is a sign of the evolution of U.S.

assistance from once leading assistance efforts to “now supporting Colombia’s sustainment and

nationalization of those efforts.”30 According to the FY2013 request, the United States is

supporting Colombia’s National Consolidation Plan (NCP) that has the goal of re-establishing

state control and legitimacy in areas previously dominated by illegally armed groups. The

strategy employs a phased approach combining security, counternarcotics, and economic and

social development initiatives. U.S. support for the NCP is through the Colombia Strategic

Development Initiative (CSDI) that includes assistance in a variety of areas, including drug

eradication and interdiction; capacity building for the military, national police, and prosecutor

units; alternative development programs; support for Colombian land restitution reforms;

reparations for victims and vulnerable populations; and promoting respect for human rights and

the rule of law and protection of vulnerable citizens. Since 2002, Congress has tied a portion of

U.S. assistance to the Colombian military to efforts by the Colombian military and government

regarding human rights and severing ties with paramilitaries.31

As set forth by the State Department, the proposed $73.7 million in assistance for Peru seeks to

strengthen the country’s democracy through increased social and economic inclusion, improved

governance, and sound environmental stewardship. Almost two-thirds of the aid is from the DA

account, and would fund a variety of projects, including alternative development programs, the

provision of health and education services, decentralization of social services, reforms in basic

education, conservation of natural resources, and poverty alleviation activities targeting rural

30

Ambassador William R. Brownfield, Assistant Secretary of State for International Narcotics and Law Enforcement

Affairs, prepared statement for the U.S. Congress, House Committee on Appropriations, Subcommittee on State,

Foreign Operations, and Related Programs, Security Challenges in Latin America, 112th Cong., 2nd sess., March 29,

2012, available at: http://appropriations.house.gov/UploadedFiles/HHRG-112-AP04-WState-WBrownfield20120329.pdf.

31

For more detailed information on Colombia and U.S. policy, see: CRS Report RL32250, Colombia: Background,

U.S. Relations, and Congressional Interest, by (name redacted).

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areas. Almost one-third of the assistance is from the INCLE account, and would fund programs to

increase drug eradication and interdiction capabilities, improve anti-money laundering efforts,

strengthen the judicial system, and reduce rising drug use.32

The Administration’s $22.2 million FY2013 request for Bolivia continues the downward

trajectory of U.S. assistance over the past several years. U.S.-Bolivian relations have deteriorated

since 2008, when the Bolivian government expelled the U.S. Ambassador and the Drug

Enforcement Administration (DEA). Since then, President Bush, and subsequently President

Obama, have determined annually, pursuant to the narcotics certification process, that Bolivia has

failed to meet its obligations under international narcotics agreements. At the same time, both

Presidents waived sanctions so that U.S. bilateral assistance programs could continue. For the

FY2013 request, aid would continue to fund health sector activities to reduce maternal and child

mortality and increase the use of voluntary family planning and reproductive health services. Aid

from the DA account would fund activities to strengthen the management capabilities of local

government; support the protection of Bolivia’s biodiversity; and promote sustainable use of

natural resources, goods, and services. Assistance from the INCLE account would provide limited

support for counternarcotics efforts, including monitoring coca cultivation and interdicting drugs

and precursor chemicals.

For Ecuador, a majority of the $21.3 million FY2013 request would come from the DA account

and fund a variety of projects to support alternative development programs, local governments

and the encouragement of citizen participation in democratic processes, broad-based economic

development, and biodiversity conservation. Aid from the INCLE account would support

counternarcotics operations by modernizing the capacity of police and military in interdiction,

evidence collection, stronger port and maritime controls, and increased speed and professionalism

in the prosecution of criminal cases (especially those related to drug trafficking, money

laundering, and trafficking in persons).

With regard to Venezuela, the United States has traditionally only provided small amounts of

assistance because of the country’s oil wealth and relatively high per capita income level. In

recent years, assistance has focused on democracy aid to nongovernmental organizations,

including most recently $5 million in FY2011 and an estimated $6 million in FY2012. The

FY2013 request is for $3 million in democracy assistance, implemented by USAID. According to

the State Department, the assistance seeks to promote broad participation in the democratic

process by promoting good governance, raising awareness about social issues, increasing

confidence in the democratic process, and encouraging citizen participation.33

32

For more detailed information on Peru and U.S. policy, see: CRS Report R42523, Peru in Brief: Political and

Economic Conditions and Relations with the United States, by (name redacted).

33

For more detailed information on Venezuela and U.S. policy, see: CRS Report R40938, Venezuela: Issues for

Congress, by (name redacted).

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Figure 6. Map of South America

Source: CRS

Notes: The Andean region is pictured in light green; Brazil and the Southern Cone are pictured in dark green.

Guyana and Suriname are traditionally considered part of the Caribbean while French Guiana is a French

territory.

Brazil and the Southern Cone

Background. Taking into account obligations from all U.S. agencies, the United States provided

Brazil and the countries of the Southern Cone of South America—Argentina, Chile, Paraguay,

and Uruguay—with foreign assistance worth $1.6 billion in constant 2010 U.S. dollars ($1.3

billion in current, or non-inflation-adjusted, dollars) between FY1980 and FY2010.34 Over 82%

34

All U.S. aid statistics and percentages for FY1980-FY2010 are drawn from the “Green Book” maintained by USAID

(continued...)

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of the assistance provided was in the form of economic aid with the remainder in military aid.

Brazil accounted for 36% of the assistance provided between FY1980 and FY2010, followed by

Paraguay (29%), Chile (17%), Argentina (11%), and Uruguay (7%).

U.S. assistance to Brazil and the Southern Cone has increased in each decade since 1980. Aid was

relatively limited during the 1980s as all five countries in the sub-region were ruled by

dictatorships that engaged in varying levels of repression. Total assistance for the decade

amounted to $254 million in 2010 U.S. dollars, nearly 99% of which was economic aid. U.S.

assistance more than doubled to $523 million in 2010 U.S. dollars during the 1990s as each of the

countries reestablished democratic governance. U.S. assistance to the sub-region increased again

to $741 million in 2010 dollars between FY2000 and FY2009, and in FY2010, Brazil and the

countries of the Southern Cone received $109 million in U.S. aid.

FY2013 Appropriations Request. Through annual State Department and Foreign Operations

appropriations legislation funding for the State Department and USAID, the United States

provided Brazil and the countries of the Southern Cone with $33.3 million in current U.S. dollars

in FY2011 and an estimated $23.9 million in FY2012. The Administration’s FY2013 request for

the sub-region is $14.4 million, a $9.4 million (40%) decrease from the FY2012 estimate. Brazil

accounted for over 70% of the combined appropriations for the sub-region in FY2011 and

FY2012. Although assistance to the country would decline by $11 million (65%) under the

FY2013 request, it would still account for 43% of the sub-region total (see Table 6).

Table 6. U.S. Assistance to Brazil and the Southern Cone: FY2011-FY2013

(Appropriations in millions of current U.S. dollars)

Country

FY2011 (Actual)

FY2012 (Estimate)

FY2013 (Request)

Argentina

0.9

1.4

0.8

Brazil

23.3

17.2

6.2

Chile

1.3

1.2

1.1

Paraguay

6.8

3.7

5.9

Uruguay

1.0

0.5

0.5

Total

33.3

23.9

14.4

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012; and FY2012 653(a) Foreign Aid Allocations, May 24, 2012.

Notes: The FY2012 figures are estimates and may change.

Under the FY2013 request, Brazil would receive $6.2 million in U.S. assistance. Since Brazil is

now the sixth-largest economy in the world and is making major strides in reducing poverty, U.S.

assistance to the country is transitioning from supporting development programs in Brazil to

providing assistance designed to promote development in third countries. About one-third of

FY2013 aid would be funded through the DA account and would be used to strengthen the

Brazilian government’s development agency (the Brazilian Cooperation Agency) and implement

(...continued)

online, and include all U.S. economic and military assistance, using constant 2010 U.S. dollar amounts of obligated

(committed) funds from all agencies. See: USAID, U.S. Overseas Loans and Grants: Obligations and Loan

Authorizations, July 1, 1945 - September 30, 2010, available at: http://gbk.eads.usaidallnet.gov/index.html.

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jointly funded projects in other developing countries. Such projects would likely build on Brazil’s

expertise in agriculture, food security, and school feeding programs and focus on priority

countries in sub-Saharan Africa and the Western Hemisphere. About 21% of the FY2013 request

for Brazil would provide a final year of support for HIV/AIDS programs in the country. The

balance of U.S. aid to Brazil (about 47% of the total) would support counternarcotics and other

security efforts in the country, and increase cooperation and interoperability between Brazilian

and U.S. military forces and law enforcement agencies.35

As the poorest nation in the Southern Cone, Paraguay would receive $5.9 million under the

FY2013 request. Over 85% of the assistance for Paraguay would be funded through the DA

account. This assistance is designed to improve justice sector and civil service transparency,

strengthen the oversight capacity of civil society organizations, and help small farmers improve

their productivity and obtain better access to markets. The remainder of U.S. assistance to

Paraguay would be provided through the IMET, FMF, and INCLE accounts to support security

efforts. Training and equipment would be provided to the Paraguayan military to support its

professional development and expeditionary capacity, and aid for Paraguay’s counternarcotics

unit would support demand reduction and drug detection operations.

Argentina, Chile, and Uruguay, which are considered upper-middle-income economies and

have per capita incomes that are over three times higher than that of Paraguay, would continue to

receive small amounts of U.S. assistance in FY2013. The three countries would receive a

combined $2.3 million in U.S. aid. About $1.8 million in IMET would support efforts to

modernize the three countries’ military forces, increase their interoperability with U.S. forces, and

improve their capacities to participate in international peacekeeping missions. Additionally,

Argentina and Chile would each receive $270,000 in NADR funds to improve port security and

export controls and support other anti-terrorism and non-proliferation initiatives.36

Regional and Centrally Managed Programs

There are four regional programs administered by the State Department and USAID that provide

assistance to Latin America and the Caribbean: (1) the State Department’s Western Hemisphere

Regional program, which includes the CARSI program for Central America and the CBSI

program for the Caribbean; (2) USAID’s Central America Regional program; (3) USAID’s Latin

America and Caribbean Regional program; and (4) USAID’s South America Regional program.

Of these, USAID’s Central America Regional program has already been discussed above, as have

the CARSI and CBSI programs (see the “Mexico and Central America” and “Caribbean”

sections). This section focuses on the remaining regional programs that have not yet been

examined as well as assistance to the region provided through State Department centrally

managed programs: international humanitarian assistance funded through the MRA account; and

assistance focusing on efforts to counter transnational crime and drug trafficking funded through

global programs of the INCLE account.

The State Department’s Western Hemisphere Regional program, in addition to providing the

majority of funding for CARSI and CBSI described above, funds hemisphere-wide initiatives to

35

For more detailed information on Brazil and U.S. policy, see: CRS Report RL33456, Brazil-U.S. Relations, by (name

redacted).

36

For more detailed information on Chile and U.S. policy, see: CRS Report R40126, Chile: Political and Economic

Conditions and U.S. Relations, by (name redacted).

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foster greater economic opportunity and social equity, promote clean energy security and mitigate

the effects of global climate change, and support hemisphere-wide security-related assistance.

The non-CARSI/CBSI portion of the Western Hemisphere Regional program, which includes

funding from the ESF and NADR foreign aid accounts, has declined significantly in recent years,

from $34.7 million in FY2011 to an estimated $21.9 million in FY2012, a 37% decline. The

FY2013 request of $14.4 million continues the decline in non-CARSI/CBSI funding, with a 34%

decline from FY2012.

Funding from the regional program has supported commitments related to U.S. participation in

the Sixth Summit of the Americas held in Cartagena, Colombia, as well as hemisphere-wide

antiterrorism assistance and efforts regarding counterterrorism finance, export controls, border

security, and terrorist interdiction. Over the past several years, the regional program also has

supported the two following policy initiatives:

Energy and Climate Partnership of the Americas (ECPA). At the April 2009 Summit of the

Americas, President Obama invited Western Hemisphere governments to join together to

deepen collaboration on energy security and climate change. To date, the ECPA involves

some 40 initiatives, with the United States taking the lead on some, and others being led by

Brazil, Canada, Chile, Costa Rica, Mexico, Peru, and Trinidad and Tobago. U.S. funding

supports regional cooperation related to energy efficiency, renewable energy, cleaner fossil

fuels, interconnectivity of electrical grids, reducing emissions from deforestation, and

enhancing country capacity for climate change adaptation. Regional organizations such as the

Inter-American Development Bank (IDB), the Organization of American States (OAS), and

the Latin American Energy Organization are also supporting the ECPA, as are the World

Bank, the private sector, civil society, and academia.37

Pathways to Prosperity in the Americas. This initiative originally was launched in September

2008 under the Bush Administration to provide a forum to ensure that the benefits of trade are

broadly shared and to expand cooperation on development issues. The partnership currently

involves the United States and 14 other hemispheric nations—Belize, Canada, Chile,

Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Mexico,

Nicaragua, Panama, Peru, and Uruguay—along with the institutional support of the IDB, the

OAS, and the United Nations Economic Commission for Latin America and the Caribbean

(ECLAC/CEPAL). The initiative promotes economic growth and opportunity, especially for

marginalized groups such as indigenous peoples, women, and Afro-descendants.38

USAID’s Latin American and Caribbean Regional program consists largely of aid provided

through the DA account and smaller amounts of GHP assistance. Total funding for the regional

program amounted to almost $53 million in FY2011, and an estimated $45 million in FY2012.

The FY2013 request is for almost $46 million. DA funding supports efforts to prevent crime and

violence; strengthen basic and higher education; and help countries take advantage of economic

opportunities, facilitate food security strategies, and mitigate and adapt to global climate change.

GHP assistance complements efforts through bilateral assistance and uses regional approaches to

37

See the website of the ECPA, available at: http://ecpamericas.org/. Also see: White House, “Energy and Climate

Partnership of the Americas,” March 21, 2011, available at:

http://www.whitehouse.gov/sites/default/files/ecpa_factsheet.pdf.

38

See the website of the Partnership, available at: http://pathways-caminos.org/Home/tabid/57/language/enUS/Default.aspx; also see: U.S. Department of State, “Pathways to Prosperity in the Americas, Fact Sheet,” April 8,

2011, available at: http://www.state.gov/p/wha/rls/fs/2011/158760.htm.

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improve access to health services for underserved groups. The health funding covers activities in

four areas: maternal and child health, family planning and reproductive health, tuberculosis, and

HIV/AIDS.

USAID’s South America Regional program consists of DA and GHP assistance supporting

economic growth, environmental, and health programs. Total funding for the regional program

amounted to about $9.8 million in FY2011 and an estimated $15.6 million in FY2012. The

FY2013 request is for $13.5 million. DA supports the Initiative for Conservation in the Andean

Amazon (ICAA), which focuses on conserving biodiversity and combating deforestation and

forest degradation in the Amazon basin.39 The regional program also supports the Andean Trade

Capacity Building Program, which focuses on improving the ability of Andean countries to

comply with international trade agreements, including those related to labor rights and the

environment, and to increase private sector competitiveness. GHP funding under the regional

program supports the Amazon Malaria Initiative (AMI), begun in 2001, which assists seven South

American countries—Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, and Suriname—in

preventing and controlling malaria in the Amazon Basin.

As noted above, in addition to these regional programs, the State Department also provides

assistance to the region through centrally managed programs that generally are not reflected in socalled all-spigot or country/account summary tables issued by the State Department in its annual

Congressional Budget Justification. For example, the State Department’s Bureau of Population,

Refugees, and Migration oversees all MRA funding worldwide. MRA assistance for Western

Hemisphere countries amounted to $57 million in FY2011 and an estimated $54 million in

FY2012. The FY2013 request is for $47.2 million, about a 12% decrease from FY2012. MRA

assistance for Latin America supports protection and assistance for internally displaced persons

(IDPs) in Colombia as well as Colombians seeking asylum and refugees in neighboring Ecuador,

Venezuela, Panama, and Costa Rica. According to the State Department, the violence in

Colombia has resulted in an estimated 4 million IDPs, refugees, and other persons of concern in

Colombia and neighboring countries. MRA funding also supports regional programs of the Office

of the United Nations High Commissioner for Refugees (UNHCR), the International Committee

for the Red Cross (ICRC) and the International Organization for Migration (IOM) in the

Caribbean region. This includes support for Haiti, where the ICRC is providing support for health

care, water systems improvement, and monitoring of prison conditions.

Several other centrally managed programs that provide INCLE assistance worldwide, including to

Latin America, are administered by the State Department’s Bureau of International Narcotics and

Law Enforcement Affairs, although the State Department does not provide a regional or country

breakdown of such assistance under these programs in its annual budget justification. The

Interregional Aviation Support and the Critical Flight Safety Programs provide support services

for counternarcotics aviation programs involving fixed- and rotary-wing aircraft in several Latin

American countries—Colombia, Bolivia, Guatemala, and Peru. INCLE funds also support an

International Law Enforcement Academy in El Salvador and a Regional Training Center in Lima,

Peru. A Central American Anti-Gang program focuses on investigative, legal, and intelligence

capacity; community policing; prevention; and prison management in Central America.

39

See the website of USAID’s ICAA, available at: http://www.amazonia-andina.org/en.

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Table 7. U.S. Assistance Provided through Regional and Centrally Managed

Programs: FY2011-FY2013

(Appropriations in millions of current U.S. dollars)

Account/Program

FY2011 (Actual)

FY2012 (Estimate)

FY2013 (Request)

State Western

Hemisphere Regional

213.6

220.9

180.9

[CARSI]

[101.5]

[135.0]

[107.5]

[CBSI]

[77.4]

[64.0]

[59.0]

USAID Central America

Regional

28.6

32.1

29.7

USAID Latin America and

Caribbean Regional

52.8

44.9

45.7

USAID South America

Regional

9.8

15.6

13.5

Migration and Refugee

Assistance

57.1

53.9

47.2

Total

361.9

367.3

317.0

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012; FY2012 653(a) Foreign Aid Allocations, May 24, 2012; and Fiscal Year 2012 Congressional Spending Plan:

Central America Regional Security Initiative, June 19, 2012.

Notes: Assistance figures in this table for CARSI, CBSI, and USAID’s Central America Regional programs are

also included in Table 3 and Table 4 covering assistance to Central America and the Caribbean, respectively.

The FY2012 figures are estimates and may change.

Other U.S. Agencies Providing Foreign Assistance

There are a number of U.S. government agencies beyond the State Department and USAID that

provide foreign assistance to the nations of Latin America and the Caribbean. For a variety of

reasons, such as differences in appropriations and reporting timelines, these programs are

discussed separately from those administered by the State Department and USAID. They include

the Department of Defense, the Inter-American Foundation, the Millennium Challenge

Corporation, and the Peace Corps.

Department of Defense

The Department of Defense (DOD) has provided assistance to foreign governments, militaries,

and civilians for many years. In recognition of the agency’s unique capabilities and resources,

Congress has provided DOD with a number of legislative authorities to carry out foreign

assistance efforts. Within Latin America and the Caribbean, DOD recently has provided

humanitarian, counterdrug, and counterterrorism and stabilization assistance. Some of this

assistance differs from traditional foreign aid, as the principal purpose of the activities is to

support the institutional needs of DOD. Many humanitarian assistance programs, for example, are

primarily designed as training opportunities for members of the U.S. Armed Forces. The two

regional combatant commands responsible for DOD operations in the hemisphere are U.S.

Northern Command (NORTHCOM), which includes Mexico and the Bahamas, and U.S.

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Southern Command (SOUTHCOM), which includes the rest of Latin America and the Caribbean.

DOD assistance is funded through the annual Department of Defense appropriations legislation.

Congress has authorized DOD to engage in a variety of humanitarian assistance activities,

transport humanitarian goods, and provide disaster relief and emergency response.40 Under 10

U.S.C. Section 2561, for example, Congress has authorized the Secretary of Defense to expend

funds to transport humanitarian relief and for other humanitarian purposes. In FY2010, the most

recent year for which data are available, DOD provided some $84 million in (§2561)

humanitarian assistance through nearly 200 projects in at least 28 countries in the region. This

assistance ranged from an alert warning system in Chile, to the provision of insecticide-treated

nets in Brazil, to the renovation of health centers in Panama. Haiti was by far the largest regional

recipient of such assistance, receiving $34.8 million in the aftermath of the massive January 2010

earthquake.41

Additionally, DOD assists partner countries in preparing for, and responding to, natural disasters

and other humanitarian emergencies. Given its readily deployable resources, DOD is able to

provide critical, time-sensitive support during humanitarian emergencies. Within 24 hours of the

earthquake in Haiti, for example, SOUTHCOM had deployed an initial assessment team to the

country consisting of military engineers, operational planners, and command and control and

communication specialists. U.S. forces quickly restored air traffic control, enabled round the

clock airfield operations, delivered humanitarian supplies, and provided security for the civilian

population.42 Although USAID is designated as the lead authority for disaster response, DOD is

often the first U.S. agency to respond to humanitarian crises as a result of these capabilities.

Beyond its humanitarian assistance activities, DOD provides a broad range of counterdrug

support to Latin American and Caribbean nations. While Congress (through the Foreign

Assistance Act of 1961, as amended) has designated the State Department as the U.S. agency

responsible for coordinating U.S. counterdrug assistance, it has granted independent counterdrug

authorities to DOD. Under Section 1004 of the National Defense Authorization Act (NDAA) of

1991 (P.L. 101-510), as amended through FY2014, DOD is authorized to support foreign

counterdrug efforts through training, transportation, reconnaissance, intelligence analysis, and

infrastructure construction. Under Section 1033 of the NDAA of 1998 (P.L. 105-85), as amended

through FY2013, DOD is also authorized to provide certain countries43 with various types of

nonlethal equipment to be used for counterdrug activities. In FY2010, the most recent year for

which data are available, DOD provided the region with nearly $435 million in counterdrug

assistance ($382 million under Section 1004 and $53 million under Section 1033). Colombia and

Mexico, which received $129.4 million and $71.6 million, respectively, were the two largest

recipients of DOD counterdrug assistance in the region.44

40

See: 10 U.S.C. §§401, 402, 404, 407, 2557, and 2561.

DOD, Section 1209 and Section 1203(b) Report to Congress on Foreign-Assistance Related Programs for Fiscal

Years 2008, 2009, and 2010, April 2012.

42

For more information on the response of DOD and other U.S. agencies to the Haitian earthquake, see: CRS Report

R41023, Haiti Earthquake: Crisis and Response, by (name redacted) and (name redacted).

43

This includes 13 countries in Latin America and the Caribbean: Colombia and Peru (P.L. 105-85); Bolivia and

Ecuador (P.L. 108-136); Belize, Guatemala, and Panama (P.L. 109-364); the Dominican Republic and Mexico (P.L.

110-181); El Salvador and Honduras (P.L. 110-417); and Jamaica and Nicaragua (P.L. 112-81).

44

DOD, April 2012, op.cit.

For more information on DOD counternarcotics in Latin America and the Caribbean, see the “DOD Counternarcotics

(continued...)

41

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In recent years, some countries in the hemisphere have received additional DOD assistance for

counterterrorism and stabilization activities. Under Section 1206 of the FY2006 NDAA (P.L. 109163), as amended, Congress has authorized DOD to train and equip foreign military and maritime

security forces for the purposes of (1) performing counterterrorism operations and (2) supporting

U.S. military and stability operations. Between FY2006 and FY2009, DOD provided $72.1

million in such assistance to 10 countries in the region. No Latin American or Caribbean nations

received Section 1206 funding in FY2010.45 Under Section 1207 of the FY2006 NDAA (P.L.

109-163), as amended, Congress authorized DOD to fund small-scale security and stabilization

activities to be implemented abroad by the State Department and USAID. Between FY2006 and

FY2010, DOD provided $67.5 million in such assistance to six countries in the region. Section

1207 authority expired at the end of FY2010.46

Inter-American Foundation47

The Inter-American Foundation (IAF) is a small independent U.S. foreign aid agency established

by the Foreign Assistance Act of 1969 (P.L. 91-175; 22 U.S.C. §290f) that provides grants for

grassroots development to help poor communities in Latin America and the Caribbean. From

FY1972, when the IAF first began making grants, through FY2011, the agency provided almost

5,000 grants worth $695 million to local and community-based groups in support of a variety of

development projects. Some grants address basic nutrition, water, sanitation, or health care needs

of poor or marginalized groups, while others help start or expand small businesses, create jobs, or

develop skills or access to markets for local products. The grant recipients are expected to

contribute their own resources or mobilize resources from other sources. These additional

resources have amounted to about $1 billion since the agency’s establishment, significantly

exceeding the IAF contributions.

Each year, the IAF typically receives hundreds of grant proposals from grassroots organizations.

In FY2011, it awarded 61 new grants and provided 33 supplements to existing grantees in the

amount of $14.9 million in the following areas: agriculture/food production (35%);

education/training (26%); enterprise development (21%); corporate social investment, cultural

expression, and the environment (5% each); and health and legal assistance (5% each). Grant

recipients were spread throughout the region, with 33% in the Andean region, 24% in Central

America, 15% in the Southern Cone of South America, 13% in Brazil, 10% in the Caribbean, and

5% in Mexico. High priority grantees included women, children and youth, indigenous people,

and African descendants. The IAF also has a fellowship program supporting doctoral students

from universities in the United States to conduct research in Latin America and the Caribbean on

(...continued)

Assistance Programs” section of CRS Report R41215, Latin America and the Caribbean: Illicit Drug Trafficking and

U.S. Counterdrug Programs, coordinated by (name redacted).

45

For more information on Section 1206 assistance and the projects funded in the region, see: CRS Report RS22855,

Security Assistance Reform: “Section 1206” Background and Issues for Congress, by (name redacted).

46

For more information on Section 1207 assistance and the projects funded in the region, see: CRS Report RS22871,

Department of Defense “Section 1207” Security and Stabilization Assistance: Background and Congressional

Concerns, FY2006-FY2010, by (name redacted).

47

Information in this section is drawn from: U.S. Department of State, Congressional Budget Justification for Foreign

Operations, Fiscal Year 2013, March 9, 2012; IAF, FY2013 Congressional Budget Justification and 2011 Year in

Review (Annual Report), available at: http://www.iaf.gov/; and Robert Kaplan, President of the IAF, testimony before

the U.S. Congress, Senate Committee on Foreign Relations, Subcommittee on Western Hemisphere, Peace Corps and

Global Narcotics Affairs, U.S. Policy Toward Latin America, 112th Cong., 1st sess., February 17, 2011.

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a broad range of issues related to grassroots development. In FY2011, the IAF awarded 15 such

fellowships.

Funding for the IAF amounted to $22.45 million in FY2011 and an estimated $22.5 million in

FY2012. The Administration’s FY2013 request is for $18.1 million, a nearly 20% decline from

FY2012 appropriations. The Administration maintains that despite the cuts in requested funding,

the agency will seek to maintain its current program level by partnering with other U.S.

government agencies and the private sector as well as by reducing overhead costs. For FY2012,

the Administration had requested $19.1 million for the IAF, maintaining that the cut was

necessary to better prioritize scarce foreign assistance funding, but Congress ultimately

appropriated $22.5 million, roughly similar to that provided in FY2011.

Beyond annual congressional appropriations, the IAF also receives additional annual funding

from the Social Progress Trust Fund (SPTF) administered by the Inter-American Development

Bank that consists of repayments for U.S. government loans to Latin American countries under

the Alliance for Progress. The IAF received almost $4.7 million from the SPTF in FY2011 and

$7.5 million in FY2012; the agency will receive $4.2 million in FY2013. According to the IAF,

SPTF funds will diminish significantly in future years as loans are reaching the end of their

payment periods. In FY2017, SPTF funding will be reduced to about $3 million and will decline

further to about $0.5 million or less beginning in FY2019.48

Millennium Challenge Corporation49

The Millennium Challenge Corporation (MCC) was established as an independent government

entity in 2004 to provide economic assistance to developing nations that perform comparatively

well on certain political, social, and economic indicators. Aid provided through the MCC differs

from that provided through the State Department and USAID in several ways, including its use of

a competitive selection process and a pledge to prevent U.S. strategic foreign policy objectives

from influencing country selection. MCC awards compacts (grant agreements) of up to five years

in length that are expected to have a measurable impact, as well as smaller threshold programs,

which are designed to assist countries in addressing areas of weak performance in order to qualify

for future compacts. To date, three Latin American and Caribbean countries—El Salvador,

Honduras, and Nicaragua—have been awarded compacts, and three others—Guyana, Paraguay,

and Peru—have been awarded threshold programs. Together, they have received $886.7 million

in assistance, accounting for almost 9.5% of MCC funding worldwide.50

El Salvador signed a five-year, $461 million compact with the MCC in November 2006. The

compact was designed to develop the country’s northern border region, where more than half of

the population lives in poverty. It included a human development project to improve physical

infrastructure such as water, sanitation, and electricity, and investments in human capital through

education and training. It also included a productive development project that supported small

farmers and small and medium-sized businesses, and a connectivity project that built and

rehabilitated a major transportation artery and secondary roads. The compact was officially

48

Information provided to CRS by the IAF, May 15, 2012.

For more information on the MCC, see: CRS Report RL32427, Millennium Challenge Corporation, by (name redacted).

More detailed compact and threshold program information is available at:

http://www.mcc.gov/pages/countries/region/latin-america.

50

CRS calculations based on MCC data available at: http://www.mcc.gov/pages/countries.

49

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completed in September 2012. In December 2011, MCC announced that El Salvador is eligible to

develop a proposal for a second compact.51 The new compact proposal is expected to be finalized

in 2013.

In June 2005, Honduras signed a five-year, $215 million economic growth compact. The

compact had two components: a rural development project to provide farmers with skills to grow

and market high-value crops, and a transportation project to improve roads and highways to link

farmers and other businesses to ports and major production centers in Honduras. MCC decided to

terminate52 $10 million in unobligated funding for Honduras in the aftermath of the June 2009

ouster of President Manuel Zelaya, reducing the total funding for the compact to $205 million.

Honduras completed the compact in September 2010, and MCC announced in January 2011 that

it would not renew the compact as a result of Honduras’s poor performance on corruption.53

Nevertheless, MCC has declared Honduras eligible for a threshold program of up to $20 million

to address corruption and other barriers to economic growth.54

Nicaragua signed a five-year, $175 million compact with the MCC in July 2005. The compact

focused on the western region of the country, which MCC identified as having the greatest

potential for economic growth. It had three components: (1) a transportation project to connect

regional markets by improving a primary road and two secondary roads; (2) a rural development

project to increase farm productivity through support for farmers and rural businesses; and (3) a

property regularization project to register land ownership. MCC suspended, and subsequently

terminated, $61.5 million in funding for Nicaragua in the aftermath of the country’s disputed

November 2008 municipal elections. The decision reduced total funding for the compact to

$113.5 million. The compact ended in May 2011.

As noted above, MCC has also awarded threshold programs to several countries in the

hemisphere. Guyana signed a two-year, $6.7 million threshold program in July 2007. The

program was designed to assist the country in improving its performance on MCC’s fiscal policy

indicator by supporting the implementation of a new tax system, strengthening the capacity of the

finance ministry, and improving the parliament’s oversight of the budget. Paraguay signed a twoyear, $34.6 million program in May 2006, which concentrated on reducing corruption, impunity,

and economic informality. In April 2009, MCC awarded Paraguay with $30.3 million for a

second two-year program. The second stage of the threshold program focused on reducing

corruption in the law enforcement, customs, health care, and judicial sectors. Peru signed a twoyear, $35.6 million threshold program in April 2009. It was designed to increase immunization

rates and combat corruption.

51

MCC, "Report on Selection of Eligible Countries for Fiscal Year 2012," December 15, 2011, available at:

http://www.mcc.gov/documents/reports/report-2011001095901-fy12-eligible-countries.pdf.

52

MCC funding can be suspended or terminated if the country receiving the assistance (1) engages in activities that are

contrary to the national security interests of the United States, (2) engages in a pattern of actions inconsistent with

MCC selection criteria, or (3) fails to adhere to its responsibilities under the compact.

53

Honduras performs below the median for low-income countries on corruption, which is a “pass-fail” indicator for

MCC compact eligibility.

54

MCC, December 15, 2011, op. cit.

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U.S. Foreign Assistance to Latin America and the Caribbean

Peace Corps55

Since the Peace Corp’s founding in 1961, almost 65,000 volunteers have served in Latin America

and the Caribbean. At the end of FY2011, almost 2,600 volunteers, about 28% of Peace Corps

volunteers worldwide, were assigned to 22 Latin American and Caribbean countries working on

development projects in six areas: agriculture, business development, education, environment,

health and HIV/AIDS, and youth development. Program funding for Latin America and the

Caribbean amounted to almost $65 million in FY2011 and an estimated $61 million in FY2012.

For the FY2013 budget request, about $60 million will be slated for programs in Latin America

and the Caribbean.

Because of agency budget cuts, the total number of volunteers in the region is expected to decline

to 2,250 at the end of FY2012 and to 1,800 by the end of FY2013. As a result, most countries in

the region with Peace Corps volunteers will see reductions, with the exception of Colombia,

where the Peace Corps reestablished a presence in 2010 after almost 30 years. The Peace Corps

also has plans to close its programs in the Eastern Caribbean countries of Antigua and Barbuda

and St. Kitts and Nevis in FY2012 and in Suriname in FY2013 as the result of the agency’s

Country Portfolio Review. All three of these countries are classified as upper-middle-income

countries by the World Bank because of their relatively high per capita income levels.

At times, security concerns have resulted in the Peace Corps suspending operations in some Latin

American and Caribbean countries. In 2005, the agency withdrew its volunteers from Haiti amid

a spike in violence and has not returned, and in 2008 it pulled out of Bolivia amid growing

instability there and a deterioration in relations with the United States. More recently, in January

2012, the Peace Corps pulled its volunteers out of Honduras because of high levels of violence

and homicides—in December 2011, a volunteer was shot and wounded in the city of San Pedro

Sula during a robbery attempt on a public bus.56 A review of the Honduras program was

completed in February 2012, and the program was formally suspended in September 2012. In

December 2011, the Peace Corps cancelled volunteer training classes for El Salvador and

Guatemala, maintaining that the agency was enhancing operational support to volunteers in these

two countries because of security concerns. Volunteer programs continue in both countries,

however, and the Peace Corps intends to send new volunteers to El Salvador and Guatemala in

2013.

Potential Issues for Congressional Consideration

Budget Priorities and Constraints

The Obama Administration maintains that its four priorities for U.S. policy toward Latin America

and the Caribbean—promoting economic opportunity, ensuring citizen security, strengthening

55

Information in this section is drawn from: Peace Corps, Congressional Budget Justification, FY2012 and FY2013.

For additional information on the Peace Corps, see: CRS Report RS21168, The Peace Corps: Current Issues, by (name

redacted).

56

Freddy Cuevas and Adriana Gomez Licon, “Peace Corps Withdraws from Honduras Amid Surging Violence, Claims

of Rights Abuses,” Associated Press, January 19, 2012; Peace Corps, “Peace Corps Reviews Operations in Honduras,”

Press Release, December 21, 2011.

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U.S. Foreign Assistance to Latin America and the Caribbean

effective institutions for democratic governance, and securing a clean energy future57—guide its

foreign aid budget request for the region. Of these, State Department officials emphasize that

success in improving citizen security remains central to achieving other U.S. objectives in the

region. Looking at the almost $1.7 billion request for the region, citizen security programs in

Mexico, Colombia, Central America, and the Caribbean account for 45% of the total. The

Administration argues that these programs emphasize an integrated and multilateral partnership to

strengthen institutions that will build and sustain the rule of law, address the root causes of crime,

and guarantee long-term public security.58 In addition to these citizen security efforts, U.S.

officials maintain that the FY2013 request also prioritizes assistance for Haiti, which would

receive 20% of aid to the region, in order to support the country’s earthquake recovery and other

development efforts including sanitation and health services to prevent and treat cholera and other

water-borne diseases.59

Another way to consider budget priorities toward the region is to look at the FY2013 request by

program area as set forth in the State Department’s Congressional Budget Justification. “Peace

and Security” assistance, which includes counternarcotics, counterterrorism, security sector

reform, and transnational crime assistance, accounts for 30% of aid to the region. The program

area of “Governing Justly and Democratically” accounts for about 24% of aid to the region, and

supports rule of law, human rights, good governance, and civil society projects. More traditional

aid programs under the program area of “Investing in People” account for 23% of assistance, and

include health, education, and aid targeted for vulnerable populations. The program area of

“Economic Growth” includes assistance for a varied array of projects on environment,

agriculture, private sector competitiveness, infrastructure, and trade and investment, and accounts

for about 20% of aid to the region.

As described above, the Administration’s request is about 10% less than the amount provided in

FY2012. The request, according to USAID’s Assistant Administrator for Latin America and the

Caribbean Mark Feierstein, takes advantage of the favorable development trends in the region

where “sound economic management has helped spur economic growth” and “greater access to

education and innovative social programs have reduced poverty and narrowed income

inequality.”60 Because of these positive trends, USAID has plans to close its mission in Panama

this year, manage its programs for Guyana out of the regional Caribbean mission in Barbados,

reduce aid to Colombia and Peru as these countries take over USAID-funded programs, and

57

For an overview of U.S. policy toward the region, see: CRS Report R42360, Latin America and the Caribbean: U.S.

Policy and Key Issues for Congress in 2012, coordinated by (name redacted).

58

Kevin Whitaker, Acting Principal Deputy Assistant Secretary of State, prepared statement for the U.S. Congress,

House Committee on Appropriations, Subcommittee on State, Foreign Operations, and Related Programs, Security

Challenges in Latin America, 112th Cong., 2nd sess., March 29, 2012, available at:

http://appropriations.house.gov/UploadedFiles/HHRG-112-AP04-WState-KWhitaker-20120329.pdf.

59

Roberta S. Jacobson, Assistant Secretary of State for Western Hemisphere Affairs, prepared statement for the U.S.

Congress, House Committee on Foreign Affairs, Subcommittee on the Western Hemisphere, Western Hemisphere

Budget Review 2013: What Are U.S. Priorities?, 112th Cong., 2nd sess., April 25, 2012, available at:

http://foreignaffairs.house.gov/112/HHRG-112-FA07-WState-JacobsonR-20120425.pdf.

60

Mark Feierstein, USAID Assistant Administrator for Latin America and the Caribbean, prepared statement for the

U.S. Congress, House Committee on Appropriations, Subcommittee on State, Foreign Operations, and Related

Programs, Security Challenges in Latin America, 112th Cong., 2nd sess., March 29, 2012, available at:

http://appropriations.house.gov/UploadedFiles/HHRG-112-AP04-WState-MFeierstein-20120329.pdf

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U.S. Foreign Assistance to Latin America and the Caribbean

withdraw from some sectors in the region where countries have made progress or where partner

governments, the private sector, or other donors are filling gaps.61

Some Members have expressed concerns about the Administration’s 10% proposed decrease for

Latin America and the Caribbean, questioning whether the resources requested are adequate to

address U.S. interests in the region. There appears to be broad agreement between Congress and

the Administration regarding the importance of maintaining assistance for citizen security and

counter-narcotics efforts in Mexico, Colombia, Central America, and the Caribbean. Some

Members, however, have expressed concerns about declines in assistance for these programs.

Assistance for Haiti’s recovery also appears to be a point of consensus, although some Members

have called for adequate monitoring to ensure transparency and accountability in the assistance

program.62

On the other hand, some Members oppose portions of the Administration’s proposed FY2013

funding for the region. For example, some Members on the House Committee on Foreign Affairs

expressed opposition to the President’s Global Climate Change Initiative, which includes $78

million for Latin American and Caribbean countries. At the same time, some Members also

expressed opposition to increases in DA funding for Bolivia, Ecuador, and Nicaragua (totaling

$4.6 million for all three countries), which have governments that they assert “continue to

undermine U.S. interests in the region, while also disregarding the rule of law and the

fundamental rights of their own citizens.”63 Some committee members opposed cuts in

democracy funding for Cuba and Venezuela, by $5 million and $3 million respectively, which

they maintain “are vital to help democracy advocates.”64

As noted above (“Legislative Action on FY2013 Appropriations”), House and Senate

Appropriations Committees have marked up their versions of the FY2013 State Department,

Foreign Operations, and Related Programs appropriations measure that respectively would reduce

worldwide foreign aid funding by 11.8% and 4.7% from the Administration’s FY2013 request.

While it is unclear how much assistance to Latin America and the Caribbean would be cut under

either scenario, the House version potentially would mean a significant reduction from the

Administration’s request. More information on House and Senate priorities will become known as

the legislation progresses.

Broad questions for Members of Congress to examine when considering the FY2013 foreign aid

appropriations request for Latin America and the Caribbean might include the following:

•

Does the FY2013 request adequately reflect U.S. interests and objectives in the

region and is the request balanced appropriately among these myriad interests

and objectives?

•

Are there specific metrics in place to evaluate effectiveness of the various

assistance programs?

61

Ibid.

See, for example: U.S. Congress, House Committee on Appropriations, Subcommittee on State, Foreign Operations,

and Related Programs, Security Challenges in Latin America, 112th Cong., 2nd sess., March 29, 2012; and U.S.

Congress, House Committee on Foreign Affairs, Subcommittee on the Western Hemisphere, Western Hemisphere

Budget Review 2013: What Are U.S. Priorities?, 112th Cong., 2nd sess., April 25, 2012.

63

“Lesser-Known Areas of Foreign Aid Budget Draw Attention of House GOP,” CQ Today Online, April 13, 2012.

64

Ibid.

62

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U.S. Foreign Assistance to Latin America and the Caribbean

•

What aid programs in the region have been most effective?

•

Are there any aid programs that have been judged to be ineffective?

•

What is the potential impact of the Administration’s 10% proposed FY2013 aid

cuts for Latin America on U.S. policy toward the region and U.S. bilateral

relations?

•

If additional cuts are to be made to foreign aid to the region in FY2013 beyond

the Administration’s request, which areas can be identified for reduction with the

least harm to U.S. interests or objectives?

Inter-Agency and Donor Coordination65

As Congress seeks to maximize the impact of scarce foreign assistance funds, it may consider

resource coordination, both among U.S. government agencies as well as with international

donors. U.S. foreign assistance is currently fragmented among a variety of different government

agencies. Although the State Department and USAID continue to manage the majority of

assistance in Latin America and the Caribbean, DOD’s role has grown and several other agencies

also manage or implement aid programs. A February 2012 Government Accountability Office

(GAO) report found that State, USAID, and DOD are not fully aware of each other’s assistance

efforts, and, consequently, the potential exists for unnecessary overlap. GAO maintains that while

there are some initiatives underway to improve the situation, and ad hoc arrangements exist in

certain cases, there is no formal framework for readily sharing information across the three

agencies.66 With better coordination, the various U.S. agencies providing assistance may be able

to ensure that their efforts are complementary and thereby increase the potential impact of their

programs.

Congress might also consider the advantages and disadvantages of closer coordination with other

international donors. According to the Organisation for Economic Co-operation and Development

(OECD), the nations of Latin America and the Caribbean received $10.7 billion in official

development assistance67 disbursements from the major international donors in 2010. The United

States provided about $2.7 billion (25%) of the total while other major bilateral donors68 provided

$5.1 billion (48%) and multilateral organizations provided $2.8 billion (26%).69 Some studies that

have attempted to map the programs being carried out in the region by the various donors have

found a lack of coordination, including programs that duplicate efforts or support conflicting

65

For a more detailed examination of donor coordination issues, see: CRS Report R41185, Foreign Aid: International

Donor Coordination of Development Assistance, by (name redacted).

66

U.S. Government Accountability Office, Humanitarian and Development Assistance: Project Evaluations and Better

Information Sharing Needed to Manage the Military's Efforts, GAO-12-359, February 2012, pp. 26-27, available at:

http://gao.gov/assets/590/588334.pdf.

67

The OECD defines official development assistance as “grants or loans to developing countries and to multilateral

agencies which are: (a) undertaken by the official sector; (b) with promotion of economic development and welfare as

the main objective; (c) at concessional financial terms (if a loan, having a grant element of at least 25 per cent). In

addition to financial flows, technical co-operation is included in aid. Grants, loans and credits for military purposes are

excluded.”

68

The largest bilateral donors to the region included Spain ($1.27 billion), Germany ($913 million), Canada ($810

million), France ($665 million), and Norway ($434 million).

69

“OECD International Development Statistics,” as presented in the OECD iLibrary, May 2012, available at:

http://www.oecd-ilibrary.org/.

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goals.70 Closer coordination could enable the various donors to ensure that their efforts are

complementary, focus on specific countries or sectors, and thereby use their limited funds for

foreign assistance more efficiently. Such coordination could be difficult, however, as it is unclear

which country or organization might lead the effort and donors may disagree on the division of

labor. Moreover, foreign assistance often has strategic objectives in addition to development

goals. While donors may be able to carry out aid programs more efficiently by focusing on certain

sectors or countries, doing so could negatively affect their strategic interests.

In recent years, the United States has begun working with countries in the region that have been

successful in overcoming their domestic development challenges to provide assistance to third

countries. The United States has signed trilateral cooperation agreements with Brazil, Chile, and

Colombia,71 which are designed to provide the U.S. government and its development partners

with access to new solutions and expertise, and multiply the impact of that expertise by

combining best practices with larger scale financial resources.72 As noted above, some of the

assistance that the Administration requested for Brazil in FY2013 would be used to strengthen the

Brazilian government’s development agency and implement jointly funded agriculture, food

security, and school feeding programs in third countries. Similarly, the report (H.Rept. 112-494)

accompanying the House FY2013 foreign aid appropriations bill recommends $18.6 million be

used to support Colombian government efforts to provide training and technical assistance to

partners in the region and around the world that are facing counternarcotics and law enforcement

challenges. Support for emerging donors, however, has potential benefits and drawbacks. Efforts

such as these could build the capacities of U.S. partners to take on more responsibility for

regional stability and development. Critics assert that providing assistance through foreign

governments raises serious oversight concerns, as doing so could potentially lead to U.S. funds

being used to support activities that would otherwise be prohibited.73

Some questions Members of Congress might consider include:

•

Are there agencies that have comparative advantages in providing certain types

of assistance?

•

Do the intended roles of the various U.S. agencies providing foreign assistance

need to be clarified?

•

Are additional mechanisms to encourage inter-agency coordination necessary?

•

Are there certain types of assistance programs that the United States has a

comparative advantage in providing?

•

Are there countries or development sectors of lower strategic importance that

other donors would be willing to support if the United States concentrated its

efforts elsewhere?

70

See, for example: Inter-American Development Bank (IDB) and Washington Office on Latin America (WOLA),

Mapeo de las Intervenciones de Seguridad Ciudadana en Centroamérica Financiadas por la Cooperación

Internacional, June 2011.

71

USAID, “United States and Colombia Partner to Advance Development in Latin America,” Press Release, June 1,

2012.

72

P. Adriana Hayes, “In Development, Three Heads are Better than One,” USAID Frontlines, March/April 2012.

73

See, for example: WOLA, “House Bill Proposes Military ‘Training Laundering’ through Colombia,” May 21, 2012,

available at: http://www.wola.org/commentary/house_bill_proposes_military_training_laundering_through_colombia.

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•

How might building the foreign assistance capacities of regional partners affect

the short-term and long-term interests of the United States?

•

Are there controls in place to ensure that U.S. funds provided through partner

nations are used in accordance with U.S. law?

Political Will and Program Sustainability

When considering foreign assistance levels for Latin American and Caribbean nations, Congress

might examine the issues of political will and program sustainability. According to the State

Department’s first Quadrennial Diplomacy and Development Review (QDDR), the United States

should “assess and monitor host nations’ political will to make the reforms necessary to make

effective use of U.S. assistance to ensure our assistance is being targeted where it can have the

most impact.”74 Unless partner nations are willing to implement complementary reforms and take

ownership and sustain programs as aid is reduced and withdrawn, the results of U.S. assistance

will likely be limited and short-lived.

The nations of Latin America and the Caribbean have a mixed record in terms of demonstrating

political will and ensuring program sustainability. The Colombian government, which has

benefitted from high levels of U.S. assistance for more than a decade, has undertaken numerous

reforms and raised revenue. As a result, the United States is able to carry out a managed transition

of its assistance programs in the country in which aid is slowly reduced as Colombia takes over

financial and technical responsibility.75 Similarly, USAID is closing its mission in Panama, and

closing out its voluntary family planning programs in a number of other Latin American countries

because partner nations have developed the capacity to manage and fund the programs on their

own.76

Despite these successes, numerous GAO reports over the past decade indicate that political will

has often been lacking in the region, especially with regard to raising sufficient government

revenue to sustain efforts initiated with U.S. support. A 2003 study of U.S. democracy programs

in six Latin American nations found “cases in which U.S.-funded training programs, computer

systems, and police equipment had languished for lack of resources after U.S. support ended.”77

Likewise, a 2010 study of counternarcotics programs found that several countries in the region

were unable to use U.S.-provided boats for patrol or interdiction operations due to a lack of

funding for fuel and maintenance.78 Even MCC-funded projects, in which assistance is contingent

on partner nation actions, have run into problems with program sustainability. A July 2011 study

of the MCC compact in Honduras found that the lifespan of roads built to improve small farmers’

74

U.S. Department of State and USAID, Leading through Civilian Power: The First Quadrennial Diplomacy and

Development Review, 2010, p.154, available at: http://www.state.gov/documents/organization/153108.pdf.

75

Dr. Rajiv Shah, USAID Administrator, testimony before the U.S. Congress, Senate Committee on Foreign Relations,

International Development Priorities in the FY 2013 Budget, 112th Cong., 2nd sess., March 6, 2012; and Jacobson

testimony, April 2012, op.cit.

76

Shah testimony, March 2012, op.cit.

77

U.S. General Accounting Office, U.S. Democracy Programs in Six Latin American Countries Have Yielded Modest

Results, GAO-03-358, March 2003, p. 4, available at: http://www.gao.gov/assets/160/157413.pdf.

78

U.S. Government Accountability Office, International Programs Face Significant Challenges Reducing the Supply

of Illegal Drugs but Support Broad U.S. Foreign Policy Objectives, GAO-10-921, July 21, 2010, p. 6, available at:

http://www.gao.gov/assets/130/125042.pdf.

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U.S. Foreign Assistance to Latin America and the Caribbean

access to markets may be relatively limited, as the municipalities where they were constructed

lack the equipment, expertise, and funding for road maintenance.79

As Members of Congress consider foreign aid appropriations for Latin American and Caribbean

countries, they might consider questions such as:

•

Does the country have the capacity to maintain the equipment that is to be

provided?

•

Is there a plan for the host country to eventually take on financial and operational

responsibility for the assistance program?

•

How much assistance will be necessary over what time frame in order to build

the host nation’s technical and financial capacity to sustain these efforts?

•

Has the country demonstrated the political will to implement necessary reforms?

•

Will U.S. assistance be complemented with host nation resources or through

public-private partnerships?

•

Should U.S. assistance be contingent upon host nation reforms or financing?

Legislative Action on FY2013 Appropriations

Appropriations committees in both houses of Congress marked up FY2013 appropriations bills

for the Department of State, Foreign Operations, and Related Programs in May 2012. The House

Committee on Appropriations held a markup of its bill (H.R. 5857) on May 17, 2012, and

reported it to the full House on May 25. It totaled $48.3 billion, including $40.1 billion for the

core State Department and Foreign Operations budget and $8.2 billion for Overseas Contingency

Operations.80 If enacted, total funding levels in FY2013 would have been 9.6% lower than the

FY2012 estimate and 11.8% lower than the Obama Administration’s FY2013 request. The Senate

Committee on Appropriations marked up its bill (S. 3241) and reported it favorably to the full

Senate on May 24. It totaled $52.3 billion, including $50 billion for the core State Department

and Foreign Operations budget and $2.3 billion for Overseas Contingency Operations. If enacted,

total funding levels in FY2013 would have been 2.3% lower than the FY2012 estimate and 4.7%

lower than the Administration’s request. The Obama Administration called the House bill

“unworkable,” as it went beyond the cuts agreed upon in the Budget Control Act of 2011 (P.L.

112-25).81 The Administration also asserted that the House funding levels would “damage our

national security and force America to face higher costs over the long term from unresolved

conflicts, transnational crime, poverty, and other cross-border threats.”82

79

U.S. Government Accountability Office, Compacts in Cape Verde and Honduras Achieved Reduced Targets, GAO11-728, July 2011, p. 103, available at: http://www.gao.gov/assets/330/321708.pdf.

80

Since FY2012, the Administration has divided the international affairs budget request into two parts: the "core"

budget request reflecting "enduring" needs, and Overseas Contingency Operations, described as extraordinary,

temporary costs in Iraq, Afghanistan, and Pakistan.

81

For more information on the Budget Control Act, see: CRS Report R41965, The Budget Control Act of 2011, by (name

redacted), (name redacted), and (name redacted).

82

Victoria Nuland, Spokesperson, “Daily Press Briefing,” U.S. Department of State, May 18, 2012.

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U.S. Foreign Assistance to Latin America and the Caribbean

It was unclear how much foreign assistance each of the nations of Latin America and the

Caribbean would receive under the two bills since, for the most part, appropriations levels for

individual countries and programs were not specified in the legislation or accompanying reports.

Nevertheless, both of the reports expressed concerns over conditions in the region and noted the

committees’ intentions to provide assistance levels above the Administration’s request to at least

some Latin American and Caribbean nations. The House report (H.Rept. 112-494) stated:

Additionally, to address the immediate security needs in this hemisphere, the Committee

recommendation restores reductions proposed in the request for key countries in Latin

America. The Committee believes it is critical to continue robust support for

counternarcotics and law enforcement efforts, as well as assistance for rule of law and

judicial reform activities in Mexico, Colombia, Central America, and the Caribbean to fight

drug trafficking and violent crime before it reaches the borders of the United States. The

Security and stability of these neighbors directly affects the United States.

The Senate report (S.Rept. 112-172) also expressed concerns about the region and called for

additional U.S. aid:

The Committee notes the daunting challenges facing many countries in Central and South

America due to struggling economies and weak governmental institutions. In addition to

funding levels for specific countries recommended under [the ESF heading], the Committee

directs additional resources be made available above the budget request to strengthen

democratic institutions, including professional and accountable police forces, and to address

the causes of poverty in the region. Additional funds should also be provided under the DA

and INCLE headings.

The committee reports stipulated specific funding levels under certain foreign aid accounts for

some countries and programs. Although they differed in programmatic emphasis, both reports

called for assistance above the requested levels for Colombia and Mexico. For Colombia, the

House report recommended ESF at the requested level, $10 million above the request in FMF,

and $18.6 million above the request in INCLE to enable Colombia to provide training and

technical assistance to partners in the region and around the world. In comparison, the Senate

report recommended $20 million above the request in ESF for alternative development and

institution building, the requested level of FMF, and $3 million above the request in INCLE. For

Mexico, the House report recommended $10.35 million above the request in DA, the requested

levels of ESF and FMF, and $49.5 million above the request in INCLE to support anti-crime and

counternarcotics efforts along the U.S.-Mexican border. The Senate report recommended INCLE

funding at the requested level and $10 million above the request in ESF to support additional

economic development activities along the U.S.-Mexican border.

The House and Senate differed in terms of other priorities. The House report recommended $5

million in ESF for democracy programs in Venezuela, which was $2 million above the

Administration’s request. In contrast, the Senate report supported the Administration’s request for

$3 million, but recommended that democracy programs be administered by the National

Endowment for Democracy (NED) instead of USAID or the Department of State. For CARSI, the

House report recommended the requested level of ESF and $10 million above the request in

INCLE. The House report also recommended the requested level of ESF and $9 million above the

request in INCLE for CBSI. The Senate report, on the other hand, supported the requested levels

for both regional security programs. While the House bill would have provided $5 million above

the request in ESF for democracy programs in Cuba, the Senate bill would have capped funding

for such programs at the requested level. Similarly, the Senate report recommended $10 million

above the request in DA for conservation programs in the Brazilian Amazon while the House

Congressional Research Service

38

U.S. Foreign Assistance to Latin America and the Caribbean

report made no reference to such programs. In addition, the Senate bill would have provided $5.4

million above the request for the Inter-American Foundation, while the House bill would have

funded the agency at the requested level.

March 2013 Update

Ultimately Congress took no action on H.R. 5857 or S. 3241. It delayed floor consideration of

FY2013 appropriations bills until after the start of the new fiscal year and the November 2012

elections, instead enacting a six-month continuing resolution that would expire in March 2013

(P.L. 112-175). In March 2013, before the continuing resolution expired, Congress approved new

legislation (P.L. 113-6) funding federal programs through the end of FY2013. Under that

measure, State Department and Foreign Operations accounts were funded at the same level as in

FY2012 with some exceptions. Funding, however, was also subject to the budget sequestration

cuts set forth in the Budget Control Act of 2011(P.L. 112-25) and the American Taxpayers Relief

Act (P.L. 112-240). While sequestration reduced State Department-Foreign Operations funding by

about 5%, those reductions will be applied at the account level, and as a result, country-level

allocations for FY2013 are not yet available.

Congressional Research Service

39

U.S. Foreign Assistance to Latin America and the Caribbean

Appendix. U.S. Assistance by Country or Program

and Account: FY2011-FY2013

Table A-1. U.S. Assistance by Country or Program and Account: FY2011

(Appropriations in thousands of current U.S. dollars)

DA

GHP

(State)

GHP

(USAID)

MRA

P.L.

480

ESF

INCLE

NADR

FMF

IMET

Total

Argentina

0

0

0

na

0

0

300

300

0

297

897

Bahamas

0

0

0

na

0

0

0

0

0

201

201

11,231

14,550

5,750

na

0

0

0

0

0

806

806

Belize

0

20

0

na

0

0

0

0

200

190

390

Bolivia

10,350

0

16,367

na

0

0

15,000

0

0

198

15,198

Brazil

15,000

1,300

4,990

na

0

0

1,000

400

0

631

2,031

Chile

0

0

0

na

0

0

0

500

0

821

1321

Colombia

0

0

0

na

10,443

184,426

204,000

4,750

47,904

1,695

453,218

Costa Rica

0

0

0

na

0

0

0

0

349

394

743

Cuba

0

0

0

na

0

20,000

0

0

0

0

20,000

Dominican

Republic

18,103

9,250

9,043

na

0

0

0

0

0

600

600

Ecuador

17,270

0

0

na

1,585

0

4,500

0

499

400

6,984

El Salvador

23,904

20

3,086

na

0

0

0

0

1,247

1,521

2,768

Guatemala

49,325

0

18,068

na

38,085

0

3,992

0

499

192

42,768

Guyana

3,000

13,525

0

na

0

0

0

0

0

386

386

0

156,240

26,946

na

44,838

131,000

19,420

0

1,597

220

197,075

Honduras

42,266

1,000

10,988

na

0

0

0

0

998

765

1763

Jamaica

5,350

300

1,200

na

0

0

0

0

0

739

739

Mexico

25,000

0

3,455

na

0

18,000

117,000

5,700

7,984

1,006

149,690

Nicaragua

16,400

897

5,891

na

0

0

0

0

339

538

877

Panama

0

0

0

na

0

0

0

150

2,096

738

2,984

Paraguay

5,500

0

0

na

0

0

500

0

399

407

1306

Peru

49,789

50

9,123

na

0

0

31,500

2,000

3,500

619

37,619

Suriname

0

0

0

na

0

0

0

0

0

251

251

Trinidad &

Tobago

0

0

0

na

0

0

0

0

0

253

253

Uruguay

0

0

0

na

0

0

0

0

399

590

989

Venezuela

0

0

0

na

0

5,000

0

0

0

0

5,000

Barbados &

Eastern

Caribbean

Haiti

Congressional Research Service

40

U.S. Foreign Assistance to Latin America and the Caribbean

DA

GHP

(State)

GHP

(USAID)

MRA

P.L.

480

USAID

Central

America

Regional

17,000

6,171

5,391

na

0

USAID

South

America

Regional

4,530

0

5,289

na

USAID

Latin

America

and

Caribbean

Regional

47,445

0

5,390

State

Western

Hemisphere

Regional

0

0

[CARSI]

[0]

[CBSI]

Total

ESF

INCLE

NADR

FMF

IMET

Total

0

0

0

0

0

28,562

0

0

0

0

0

0

9,819

na

0

0

0

0

0

0

52,835

0

na

0

76,704

109,008

11,400

16,467

0

213,579

[0]

[0]

[na]

[0]

[30,000]

[71,508]

[0]

[0]

[0]

[101,508]

[0]

[0]

[0]

[na]

[0]

[17,000]

[37,500]

[6,400]

[16,467]

[0]

[77,367]

361,463

203,323

130,977

57,084

94,951

435,130

506,220

25,200

84,477

14,458

1,913,283

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012.

Notes: The MRA account is funded regionally. CARSI and CBSI are funded under the State Western

Hemisphere Regional program.

Congressional Research Service

41

U.S. Foreign Assistance to Latin America and the Caribbean

Table A-2. U.S. Assistance by Country or Program and Account: FY2012 Estimate

(Estimated appropriations in thousands of current U.S. Dollars)

DA

GHP

(State)

GHP

(USAID)

MRA

P.L.

480

ESF

INCLE

NADR

FMF

IMET

Total

Argentina

0

0

0

na

0

0

300

300

0

750

1,350

Bahamas

0

0

0

na

0

0

0

0

0

190

190

11,640

14,850

6,950

na

0

0

0

0

0

800

34,240

Belize

0

0

0

na

0

0

0

300

200

190

690

Bolivia

6,500

0

14,100

na

0

0

7,500

0

0

230

28,330

Brazil

12,000

1,300

0

na

0

0

3,000

300

0

640

17,240

Chile

0

0

0

na

0

0

0

300

0

855

1,155

Colombia

0

0

0

na

0

172,000

160,600

4,750

40,000

1,665

379,015

Costa Rica

0

0

0

na

0

0

0

0

315

375

690

Cuba

0

0

0

na

0

20,000

0

0

0

0

20,000

Dominican

Republic

12,300

9,250

7,750

na

0

0

0

0

0

810

30,110

Ecuador

15,000

0

0

na

0

0

4,500

200

450

380

20,530

El Salvador

23,904

0

0

na

0

2,000

0

1,000

1,250

1,050

29,204

Guatemala

46,325

0

17,600

na

25,000

0

5,000

0

500

760

95,185

Guyana

0

10,525

0

na

0

0

0

0

0

315

10,840

Haiti

0

141,240

25,000

na

23,000

148,281

19,420

0

0

220

357,161

Honduras

46,266

1,000

8,000

na

0

0

0

0

1,000

700

56,966

Jamaica

5,000

0

0

na

0

0

0

0

0

700

5,700

Mexico

33,350

0

1,000

na

0

33,260

248,500

5,380

7,000

1,635

330,125

Nicaragua

9,400

0

2,900

na

0

0

0

0

399

790

13,489

Panama

0

0

0

na

0

0

0

150

1,840

760

2,750

Paraguay

2,500

0

0

na

0

0

500

0

350

380

3,730

Peru

45,000

0

5,000

na

0

0

28,950

1,000

1,980

620

82,550

Suriname

0

0

0

na

0

0

0

0

0

240

240

Trinidad &

Tobago

0

0

0

na

0

0

0

0

0

180

180

Uruguay

0

0

0

na

0

0

0

0

0

465

465

Venezuela

0

0

0

na

0

6,000

0

0

0

0

6,000

USAID

Central

America

Regional

15,500

11,198

5,391

na

0

0

0

0

0

0

32,089

Barbados &

Eastern

Caribbean

Congressional Research Service

42

U.S. Foreign Assistance to Latin America and the Caribbean

DA

GHP

(State)

GHP

(USAID)

MRA

P.L.

480

ESF

INCLE

NADR

FMF

IMET

Total

USAID

South

America

Regional

11,588

0

4,000

na

0

0

0

0

0

0

15,588

USAID

Latin

America

and

Caribbean

Regional

37,100

0

7,800

na

0

0

0

0

0

0

44,900

State

Western

Hemisphere

Regional

0

0

0

na

0

84,000

115,000

6,850

15,000

0

220,850

[CARSI]

[0]

[0]

[0]

[na]

[0]

[50,000]

[85,000]

[0]

[0]

[0]

[135,000]

[CBSI]

[0]

[0]

[0]

[na]

[0]

[17,000]

[30,000]

[2,000]

[15,000]

[0]

[64,000]

Total

333,373

189,363

105,491

53,855

48,000

465,541

593,270

20,530

70,284

15,700

1,895,407

Source: U.S. Department of State, Office of U.S. foreign Assistance Resources, FY2012 653(a) Foreign Aid

Allocations, May 24, 2012; U.S. Department of State, Fiscal Year 2012 Congressional Spending Plan: Central America

Regional Security Initiative, June 19, 2012

Notes: Funding figures are estimates and may change. The MRA account is funded regionally. CARSI and CBSI

are funded under the State Western Hemisphere Regional program.

Congressional Research Service

43

U.S. Foreign Assistance to Latin America and the Caribbean

Table A-3. U.S. Assistance by Country or Program and Account: FY2013 Request

(Requested appropriations in thousands of current U.S. dollars)

DA

GHP

(State)

GHP

(USAID)

MRA

P.L.

480

ESF

INCLE

NADR

FMF

IMET

Total

Argentina

0

0

0

na

0

0

0

270

0

544

814

Bahamas

0

0

0

na

0

0

0

0

0

180

180

12,600

14,850

6,950

na

0

0

0

0

0

800

35,200

Belize

0

0

0

na

0

0

0

0

850

180

1,030

Bolivia

7,515

0

9,500

na

0

0

5,000

0

0

200

22,215

Brazil

2,000

1,300

0

na

0

0

2,000

270

0

625

6,195

Chile

0

0

0

na

0

0

0

270

0

810

1,080

Colombia

0

0

0

na

0

155,000

142,000

3,250

30,000

1,575

331,825

Costa Rica

0

0

0

na

0

0

0

0

1,402

350

1,752

Cuba

0

0

0

na

0

15,000

0

0

0

0

15,000

Dominican

Republic

13,300

9,025

6,750

na

0

0

0

0

0

765

29,840

Ecuador

16,000

0

0

na

0

0

4,500

0

450

360

21,310

El Salvador

39,000

0

0

na

0

0

0

0

1,800

1,000

41,800

Guatemala

56,000

0

17,100

na

17,000

0

2,000

0

750

720

93,570

Guyana

0

6,681

0

na

0

0

0

0

0

300

6,981

Haiti

0

131,543

25,100

na

23,000

141,000

17,500

0

1,600

220

339,963

Honduras

49,000

1,000

4,500

na

0

0

0

0

3,000

650

58,150

Jamaica

5,000

0

0

na

0

0

0

0

0

398

5,398

Mexico

23,000

0

0

na

0

35,000

199,000

3,950

7,000

1,549

269,499

Nicaragua

12,000

0

0

na

0

0

0

0

399

700

13,099

Panama

0

0

0

na

0

0

0

135

2,800

720

3,655

Paraguay

5,000

0

0

na

0

0

150

0

350

360

5,860

Peru

47,300

0

0

na

0

0

23,300

500

1,980

585

73,665

Suriname

0

0

0

na

0

0

0

0

0

225

225

Trinidad &

Tobago

0

0

0

na

0

0

0

0

0

180

180

Uruguay

0

0

0

na

0

0

0

0

0

450

450

Venezuela

0

0

0

na

0

3,000

0

0

0

0

3,000

USAID

Central

America

Regional

13,500

10,820

5,391

na

0

0

0

0

0

0

29,711

Barbados &

Eastern

Caribbean

Congressional Research Service

44

U.S. Foreign Assistance to Latin America and the Caribbean

DA

GHP

(State)

GHP

(USAID)

MRA

P.L.

480

ESF

INCLE

NADR

FMF

IMET

Total

USAID

South

America

Regional

9,500

0

4,000

na

0

0

0

0

0

0

13,500

USAID

Latin

America

and

Caribbean

Regional

38,213

0

7,525

na

0

0

0

0

0

0

45,738

State

Western

Hemisphere

Regional

0

0

0

na

0

85,200

81,000

4,685

10,000

0

180,885

[CARSI]

[0]

[0]

[0]

[na]

[0]

[47,500]

[60,000]

[0]

[0]

[0]

[107,500]

[CBSI]

[0]

[0]

[0]

[na]

[0]

[26,200]

[21,000]

[1,800]

[10,000]

[0]

[59,000]

Total

348,928

175,219

86,816

47,200

40,000

434,200

476,450

13,330

62,381

14,446

1,698,970

Source: U.S. Department of State, Congressional Budget Justification for Foreign Operations, Fiscal Year 2013, March

9, 2012.

Notes: The MRA account is funded regionally. CARSI and CBSI are funded under the State Western

Hemisphere Regional program.

Author Contact Information

(name redacted)

Analyst in Latin American Affairs

[redacted]@crs.loc.gov, 7-....

Congressional Research Service

(name redacted)

Specialist in Latin American Affairs

[redacted]@crs.loc.gov, 7-....

45

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