FY 2011 US D&G Funding

Freedom House has recently released its analysis of the Obama Administration’s FY 2011 budget request for D&G programs (which the US Government calls Governing Justly and Democratically). Overall, it is a pretty good picture, although there are some troubling signs. Continue reading »

A Closer Look at US D&G Funding

In a recent post, I discussed how pleased I was to see that the Obama administration is asking for a sizable increase for Democracy and Governance (D&G) programs in its 2010 budget request.  Since then I have taken a closer look at the numbers to get a sense of what they tell us about the priorities of the administration in this area.  There is some good news and some less than good news.

First the less than good news.  D&G funding is overwhelmingly and increasingly concentrated in a small number of countries in conflict.  Just over 50% of all D&G funding goes to four countries, Afghanistan, Iraq, Pakistan, and Sudan, and one-fourth of the requested increase is for these countries. The governance challenges these countries face suggest that D&G programs in them face a high likelihood of failure.  As one might infer from my recent post on Afghanistan, D&G programs are unlikely to be successful in a country where soldiers openly and publicly demand bribes from foreign election observers on election day while neglecting their duty to provide security.

At the same time, there is some good news.  The administration is increasing funding for a number of countries where democratic institutions are functioning, but where democratic consolidation is not yet certain (and in some cases where serious backsliding is occurring), specifically Bangladesh, Bolivia, Haiti, Honduras, Indonesia, Lebanon, Liberia, Serbia, Nigeria, Nicaragua, Serbia, and Ukraine.  I am very pleased to see funding increases in these countries as D&G programs are likely to be most successful in countries where governments are trying to govern democratically and/or where pressure forces them to do so.  Greater funding for these countries amounts to almost one-third of the total requested increase.  Nevertheless, total D&G funding for these countries is only about 10% of global D&G funding and only 20% of the amount for Afghanistan, Iraq, Pakistan, and Sudan.

In sum, we are far from using D&G funds in their most productive way.  While D&G programs can help stabilize a country in a post-conflict environment, they are no substitute for security.  In my opinion, concentrating funds in countries where security is the main challenge is a questionable policy.

2010 Budget Request for D&G Programs

Because I was out of the country for the past four months, I missed the Obama Administration’s fiscal year (FY) 2010 budget request for democracy and governance programming.  The US Government calls these programs Governing Justly and Democratically (GJ&D).  Overall, the budget is a nice surprise as the administration is requesting a 9% increase, from about $2.5 billion in FY 2009 to $2.8 billion in FY 2010 (the fiscal year runs from October 1 to September 30.)  Thus, while some have criticized the administration for not talking enough about democracy, it seems to be committed where it counts, the amount of money it is willing to spend.

The figure that most immediately stands out is that Afghanistan, Iraq, and Pakistan account for close to half the GJ&D budget.  Combined, the administration is asking for $1.3 billion for GJ&D programs for these three countries, with the vast majority going to Afghanistan. That country alone accounts for almost 30% of global GJ&D programs.  Perhaps surprisingly, by far the biggest cut for all countries is an $82 million decrease for Afghanistan, from $882 million to $800 million.  While this may appear dramatic on the surface, the decrease is mainly the result of election-related expenses.  The FY 2010 budget is actually close to 50% larger than the FY 2008 budget, the year prior to the election.  By far the largest increase for all countries is an additional $107 million for Pakistan, a 130% rise over FY 2009, primarily for programs in civil society, human rights, and rule of law.  The administration is asking for an 11% increase for Iraq, or about $20 million.

The budget also requests substantial increases for the Democratic Republic of Congo, Indonesia, Iraq, Lebanon, Liberia, Nigeria, Serbia, Sudan, and Ukraine.  Alternatively, the administration is requesting a cut for West Bank and Gaza of $18 million, or 30%.  This cut is less dramatic than it seems as it comes from expenditures following the war in Gaza in December 2008/January 2009.  There are three genuinely disappointing country cuts, however, Georgia, Kenya, and Zimbabwe.

Another interesting area to examine is expenditures across agencies.  The budget requests significant increases for USAID’s Bureau for Democracy, Conflict, and Humanitarian Affairs and Office of Transition Initiatives and about a 10% cut for the State Department’s Bureau for Democracy, Human Rights, and Labor.  The other unfortunate cut is a $15 million for the National Endowment for Democracy, from $115 million to $100 million.

Overall, I think the budget demonstrates a serious commitment to support for democracy abroad by the administration.  I am very pleased with it.  Freedom House and the Project on Middle East Democracy have more detailed analyses.