The Last Time @StateDept Had a 27% Budget Cut, Congress Killed ACDA and USIA

Posted: 4:39 am ET
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Reporting for the Washington Post in 1996, Thomas Lippman wrote that “The total budget for civilian international programs, the so-called 150 account, started to decline in the mid-1980s. It leveled off during the Bush administration, then resumed a downward slide in President Clinton’s first year.” He noted that “the relentless budget pressure that began in the mid-1980s accelerated with the Clinton administration’s deficit-reduction plan, forcing the closing of consulates, aid missions, libraries, cultural centers and even a few entire embassies, from Italy to Indonesia, from Antigua to Thailand” (see U.S. Diplomacy’s Presence Shrinking).

Bill Clinton was elected President of the United States defeating incumbent George H. W. Bush in 1992Warren M. Christopher was nominated Secretary of State by then President-elect Clinton in December 1992.  Christopher was confirmed by the U.S. Senate on January 20, 1993, and sworn in the next day. Two months into the new administration, Secretary Christopher made his first official congressional appearance as Secretary of State before the Subcommittee on Commerce, Justice, State, and Judiciary House Appropriations Committee to talk about redirecting American foreign policy, refocusing the aid budgets, and reforming institutions.

Secretary Christopher at that time said that “American foreign policy in the years ahead will be grounded in what President Clinton has called the three “pillars” of our national interest:  first, revitalizing our economy; second, updating our  security forces for a new era; and, third, protecting democracy as the  best means to protect our own national security while expanding the  reach of freedom, human rights, prosperity, and peace.”  He talked about Saddam Hussein, “If the lawlessness of [Iraqi President] Saddam Hussein has taught us any single lesson, it is that weapons of mass destruction, especially when combined  with missile technology, can transform a petty tyrant into a threat to world peace and stability.” Secretary Christopher talked about the State Department budget, “It will be a tough budget for tough times.  It will be a flexible budget that seeks austerity, not as a hardship to be endured but as a challenge to innovate and do our job  better.  Above all, we hope that this budget will mark a transitional step to a truly focused budget that sets priorities and puts resources behind them.”

Oh, brother where are ya?

In February 1993, Secretary Christopher also sent a  message to State Department employees on the Implementation Directive on Reorganization.  Two months into the Trump Administration, and days after the OMB released Trump’s “skinny budget” we have yet to hear from Secretary Tillerson on where the State Department go from here.  We know that he supports the budget cuts for his department, and he has made no public effort of defending the funding and programs for his agency but the top diplomat of the United States still has not articulated the foreign policy priorities of this administration. If Secretary Tillerson has sent a message to his troops in Foggy Bottom, we have yet to hear about it or its contents.

The proposed FY18 budget slashes the international affairs budget by 28% or 36% with Overseas Contingency Operation (OCO) funding factored in.  If passed by Congress, what happens to That Three-Legged Stool of American Foreign Policy?  As diplomacy and development will be hobbled by cuts, are we going to see an exponential growth in private contractors in support of DOD, diplomacy and development? Or are we going to just see staffing gaps and reduced diplomatic footprints from Algeria to Zimbabwe?

In Tillerson’s recent interview with IJR, he said about the State Department budget that “One can say it’s not going to happen in one year, and it’s not.”

He’s right.  The cuts may happen this year, and next year, and every fiscal year thereafter.  It sounds to us like an “American First” foreign policy does not see much use for diplomacy.  So we expect that the State Department budget will continue to be targeted during the entire Trump term. But if history is any indication, the decisions made today will have repercussions for our country down the road. Back in 1993, Secretary Christopher said, “when the time eventually comes to restore diplomatic relations with Iran, Iraq, Somalia and Libya, the money and personnel for those posts probably will have to come out of existing resources, officials said, thus increasing the pressure to close marginal posts elsewhere.” In 1996, the then Arms Control and Disarmament Agency (ACDA) director John D. Holum warned that the agency “no longer has a U.S. technical expert assigned to the U.N. weapons inspection team in Iraq.”  

With the exception of Iran, we are back in Iraq, and Somalia, and we know what happened in Libya.  We don’t grow diplomats overnight. Expertise and diplomatic muscle grow with time, with every assignment, with every challenge. What happens when the next crisis erupts in Asia? Can we just pluck diplomats and development experts from the OPM growth chamber?  Or are we going to have a civilian surge once more with diplomats lacking experience and language skills thrown into a pit and then expected to do an effective job?

Remember, do you remember?

We should note that the Democrats had control of the House and the Senate after the 1992 elections but the midterm elections in 1994 resulted in a net gain of 54 seats in the House of Representatives for the GOP, and a pickup of eight seats in the Senate. That was the Gingrich Revolution.  By the way, R.C. Hammond who previously served as press secretary to Newt Gingrich (a vocal Trump ally) is now a communications adviser for Secretary Tillerson.

WaPo reported that between 1993-1996 “the State Department has cut more than 2,000 employees and shuttered consulates in 26 foreign cities. The Agency for International Development (AID), which runs foreign aid programs, has been hit especially hard by the Republican-controlled Congress and has closed 23 missions overseas.”

In 1995, according to NYT: The U.S. ambassadors to Italy, France, Britain, Spain, the E.U., Germany, Russia and NATO reportedly got together and sent a secret cable to Secretary Christopher, signed by all of them, telling him that the “delivery system” of U.S. foreign policy was being destroyed by budget cuts. They pleaded with him to mobilize those constituencies in the U.S. that value the work of embassies, and volunteered to come to Washington to testify before Congress in their defense. The ambassadors got a polite note back from Deputy Secretary Strobe Talbott, telling them he understood their concerns but that there was a new mood in Congress. There was no invitation to testify.

The State Department at that time reportedly also promoted the concept of “diplomatic readiness,” similar to military readiness, “in hopes of persuading Congress to divert some money from the defense budget into diplomacy and foreign aid — activities that, in the diplomats’ view, save money over time by reducing the need for military actions.”

More than 100 businesses, trade associations, law firms and volunteer groups did organize a “Campaign to Preserve U.S. Global Leadership” without much success.

And this despite the fact that a 1994 GAO study indicates that only 38 percent of the U.S. government personnel in embassies work for the State Department, while 36 percent work for the Pentagon, 5 percent for Justice and 3 percent for Transportation. The other 18 percent includes representatives of the Treasury, Agriculture and Commerce departments.  We don’t know what is the current breakdown of federal agencies operating overseas under the State Department umbrella but if the Trump Administration starts turning off the lights in Africa, or Asia for instance, that could also prove problematic for the Pentagon.

What a 27% budget cut looked like for the international affairs budget?

By Fall 1995, the State Department released a Q&A on the International Affairs Budget–A Sound Investment in Global Leadership.  It includes the following:

Q. Since most Americans favor reducing government spending to balance the federal budget, have the State Department and other foreign affairs  agencies done anything to cut costs?

A. Yes, the Administration has done a great deal to cut costs. We have already:

— Cut the foreign assistance budget request by 20%;

–Trimmed more than 1,100 jobs at the State Department and 600 jobs at  the U.S. Information Agency (USIA);

–Identified, for elimination by 1997, about 2,000 jobs at the U.S.  Agency for International Development (USAID);

–Decreased administrative and overhead costs by $100 million; and

–Closed, or scheduled for closing, 36 diplomatic or consular posts, 10 USIA posts, and 28 USAID missions abroad.

OVERSEAS POSTS CLOSED, 1993-96 Consulates, consulates general and State Department branch offices: Algeria Austria Australia Brazil Colombia Egypt France Germany Indonesia Italy (2) Kenya Martinique Mexico Nigeria Philippines Poland Somalia Spain Switzerland (2) Turkey Thailand (2) Venezuela Zaire Embassies Antigua and Barbuda Comoros Equatorial Guinea Seychelles Solomon Islands. AID missions Afghanistan Argentina Belize Botswana Burkina Faso Cameroon Cape Verde Caribbean region Chad Chile Costa Rica Estonia Ivory Coast Lesotho Oman Pakistan South Pacific Switzerland Thailand Togo Tunisia Uruguay Zaire (via)

According to WaPo in 1996, USAID’s overall work force “has been reduced from 11,500 to 8,700 and is heading down to 8,000. The number of full “sustainable development missions” — on-site teams promoting long-term diversified economic development — declined from 70 at the start of the administration to 30.”

That’s what a 27% budget cut inflected on the international affairs budget did in the 90’s.

By 1999, with the Foreign Affairs Reform and Restructuring Act of 1998, the United States Arms Control and Disarmament Agency (ACDA) and the United States Information Agency (USIA) were both abolished and folded into the State Department.

Who ya gonna call?

Senate Majority leader Mitch McConnell was recently quoted saying, “America being a force is a lot more than building up the Defense Department. Diplomacy is important, extremely important, and I don’t think these reductions at the State Department are appropriate.”

According to the Washington Examiner, Senate Foreign Relations Chairman Bob Corker, R-Tenn  apparently signaled that President Trump’s initial proposed budget “won’t dictate how the State Department gets funded.” “The president’s budget goes in the waste basket as soon as it gets here,” he said.

We should note that in the 1990s, both houses of Congress (GOP) and a White House under a Democrat worked together to slashed the State Department budget. It was not a question of how much to cut, but where to cut.  This time around, we have a Republican Congress and a Republican White House, but while the WH is gunning for these cuts, the Senate particularly, appears not to be quite on board with the slash and burn cuts.  Still, we are reminded what former Ambassador to the Conference on Disarmament Stephen J. Ledogar (1990-1997) noted in his oral history (PDF) — that “Not very many people will admit this, but the administration bowing to Congress on those consolidations was part of the price that was paid by the Clinton administration to Jesse Helms in exchange for him agreeing to let the Chemical Weapons Convention go through the Senate.” 

So … while there are differences in the circumstances during the budget cuts in the 1990’s and the proposed budget cuts in the current and FY18 fiscal years, we are mindful how things can change with the right carrots.

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Snapshot: @StateDept Presidential Appointee Positions Requiring Senate Confirmation

Posted: 12:48 am  ET
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POTUS44 nominated Hillary Clinton as the 67th Secretary of State in December 2008. She assumed office on January 21, 2009.  Rex Tillerson had to wait a couple of weeks to get to Foggy Bottom after inauguration day but finally assumed office on February 1, 2017.  Susan Rice was nominated as Ambassador to the UN in December 2008 and assumed post on January 26, 2009. Nikki Haley was confirmed on January 24, 2017.

By January 28, 2009, Jack Lew was at the State Department as Deputy Secretary of State for Management and Resources (D/MR). The following day, Jim Steinberg had also assume post as Deputy Secretary of State (D). To-date, no deputy secretary has been announced and we understand that the D/MR position will not be filled.

The under secretaries in the Obama first term were at post by the following dates:

Under Secretary of State for Political Affairs: Burns, February 29, 2008
Under Secretary of State for Management:: Kennedy, November 15, 2007 (retained)
Under Secretary of State for Economic Growth, Energy, and the Environment: Hormats, September 23, 2009
Under Secretary of State for Public Diplomacy and Public Affairs: McHale, May 26, 2009
Under Secretary of State for Arms Control and International Security Affairs: Tauscher, June 26, 2009
Under Secretary of State for Civilian Security, Democracy, and Human Rights: Otero, August 10, 2009

The Obama White House rolled out its first dozen ambassadors in May 2009; the announcement includes the chief of mission positions for Argentina, Brazil, France, UK, Denmark, Rome, Iceland, India, Japan, Kosovo, and Sri Lanka (see White House Rolls Out First Dozen Ambassadors). The nominees for Sweden, Croatia, Belgium, Switzerland, Belize, etc, were not announced until mid June 2009.

To-date, the Trump White House has announced two ambassadorships (China, Israel). Below is a list of State Department positions, with a link to ambassador positions that require Senate confirmation.

Via CRS:

Full-Time Positions

Department of State 
Secretary – Rex Tillerson (confirmed 2/1/17)
Deputy Secretary
Deputy Secretary—Management and Resources
Under Secretary—Arms Control and International Security
Under Secretary—Economic, Energy and Agricultural Affairs Under Secretary—Civilian Security, Democracy, and Human Rights Under Secretary—Management
Under Secretary—Political Affairs Tom Shannon (confirmed 2/12/16)
Under Secretary—Public Diplomacy and Public Affairs
Assistant Secretary—African Affairs (Although not guaranteed, most recent Assistant Secretaries—African Affairs also held the advice and consent part- time position as a member of the Board of Directors of the African Development Foundation)
Assistant Secretary—Arms Control, Verification and Compliance
Assistant Secretary—Budget and Planning/*Chief Financial Officer (The chief financial officer (CFO) may be appointed by the President, with the advice and consent of the Senate, or may be designated by the President from among agency officials who have been confirmed by the Senate for other positions (31 U.S.C. §901(a)(1)).
Assistant Secretary—Conflict and Stabilization Operations
Assistant Secretary—Consular Affairs
Assistant Secretary—Democracy, Human Rights and Labor
Assistant Secretary—Diplomatic Security/Director—Office of Foreign Missions112 Assistant Secretary—East Asian and Pacific Affairs
Assistant Secretary—Economic, Energy and Business Affairs
Assistant Secretary—Educational and Cultural Affairs
Assistant Secretary—European and Eurasian Affairs
Assistant Secretary—International Narcotics and Law Enforcement Affairs Assistant Secretary—International Organization Affairs
Assistant Secretary—International Security and Nonproliferation
Assistant Secretary—Legislative Affairs
Assistant Secretary—Near Eastern Affairs
Assistant Secretary—Oceans and International Environmental and Scientific Affairs Assistant Secretary—Political-Military Affairs
Assistant Secretary—Population, Refugees and Migration
Assistant Secretary—South and Central Asian Affairs
Assistant Secretary—Western Hemisphere Affairs Ambassador-at-Large—Coordinator—Counterterrorism Ambassador-at-Large—Global Women’s Issues
Ambassador-at-Large—Director—Office to Monitor and Combat Trafficking in Persons Ambassador-at-Large—International Religious Freedom
Ambassador-at-Large—War Crimes Issues
U.S. Permanent Representative to the Organization of American States
U.S. Permanent Representative to the North Atlantic Treaty Organization Coordinator—Reconstruction and Stabilization
Coordinator—U.S. Global AIDS
Director General—Foreign Service – Arnold Chacon (confirmed 12/12/14)
Chief Financial Officer
Inspector General – Steve Linick (confirmed 9/17/2013)
Legal Adviser
Chief of Protocol

Ambassadors
China – Terry Branstad (nominated)
Israel – Friedman David M. (February 2017) pending at SFRC
Republic of Congro – Haskell, Todd Philip (January 2017) pending at SFRC
Republic of Guinea-Bissau – Mushingi, Tulinabo Salama  (January 2017) pending at SFRC

Full list of diplomatic missions below:

Foreign Service Officers (numerous commissions and promotions)

U.S. Mission to the United Nations
U.S. Permanent Representative and Chief of Mission—United Nations: Nikki Haley (confirmed 1/24/17)
U.S. Deputy Permanent Representative—United Nations
U.S. Representative—United Nations Economic and Social Council
U.S. Alternate Representative—Special Political Affairs in the United Nations U.S. Representative—United Nations Management and Reform
U.S. Representative—European Office of the United Nations (Geneva)
U.S. Representative—Vienna Office of the United Nations (also serves as a representative to the International Atomic Energy Agency)
U.S. Representative—International Atomic Energy Agency
U.S. Deputy Representative—International Atomic Energy Agency
U.S. Representative and Alternate Representatives to sessions of the General Assembly and other United Nations Bodies—numerous positions (terms of office depends on length of session)

U.S. Agency for International Development 
Administrator
Deputy Administrator
Assistant Administrator—Sub-Saharan Africa Assistant Administrator—Asia
Assistant Administrator—Europe and Eurasia Assistant Administrator—Food Safety Assistant Administrator—Global Health
Assistant Administrator—Democracy, Conflict, and Humanitarian Assistance Assistant Administrator—Latin America and Caribbean
Assistant Administrator—Middle East
*Assistant Administrator—Legislative and Public Affairs
Assistant Administrator—Policy, Planning and Learning
Assistant Administrator—Economic Growth, Agriculture, and Trade
Inspector General

European Bank for Reconstruction and Development
U.S. Executive Director

International Broadcasting Bureau, Broadcasting Board of Governors
Director

International Joint Commission, United States and Canada
Commissioner—three positions

International Monetary Fund
U.S. Executive Director (two-year term of office)
U.S. Alternate Executive Director (two-year term of office)

Inter-American Development Bank
U.S. Executive Director (three-year term of office—The incumbent of this position also serves as U.S. Executive Director for the Inter-American Investment Corporation.)

U.S. Alternate Executive Director (three-year term of office—The incumbent of this position also serves as U.S. Alternate Executive Director for the Inter-American Investment Corporation.)

U.S. Trade and Development Agency
Director

Organizations with Full- and Part-Time Positions

African Development Bank
U.S. Executive Director (five-year term of office; full-time)
Governor and Alternate Governor (five-year terms of office; part-time)

Asian Development Bank
U.S. Executive Director (full-time) Governor and Alternate Governor (part-time)

International Bank for Reconstruction and Development
U.S. Executive Director (two-year term of office; full-time—The incumbent also serves as U.S. Executive Director for the International Finance Corporation and the International Development Association.)

U.S. Alternate Executive Director (two-year term of office; full-time—The incumbent also serves as U.S. Alternate Executive Director for the International Finance Corporation and the International Development Association.)

Governor (same individual as the International Monetary Fund Governor; five-year term of office; part-time—The incumbent also serves as Governor for the International Finance Corporation and the International Development Association.)

Alternate Governor (five-year term of office; part-time—The incumbent also serves as Alternate Governor for the International Finance Corporation and the International Development Association.)

Millennium Challenge Corporation

Chief Executive Officer (full-time)
*Member, Board of Directors—four (of nine total) positions (part-time; three-year terms of office)

Overseas Private Investment Corporation

President/Chief Executive Officer (full-time)
Executive Vice President (full-time)
*Member, Board of Directors—8 (of 15 total) positions (part-time; three-year terms of office)

Peace Corps

Director (full-time)
Deputy Director (full-time)
*Member, National Peace Corps Advisory Council—15 positions (part-time; political balance required; two-year terms of office)

Part-Time Positions

Advisory Board for Cuba Broadcasting (political balance required)
*Member—eight positions (three-year terms of office)

African Development Foundation, Board of Directors (political balance required)
*Member—seven positions (six-year terms of office)

African Development Fund

Governor and Alternate Governor

Broadcasting Board of Governors (political balance required)
Member—eight (of nine total) positions (three-year terms of office)

Inter-American Foundation, Board of Directors (political balance required)
*Member—nine positions (six-year terms of office)

U.S. Advisory Commission on Public Diplomacy (political balance required)
*Commissioner—seven positions (three-year terms of office)

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