Part One: U.S. strategy in the 21st century: leadership through hegemony
Chapter IV: Funding for U.S. International Policy
The Structure of Funding for International Affairs60
Right away, it is worth noting (indeed, State Department officials never tire of reminding us about it) that in 1949, expenditures on international affairs amounted to 16 percent of the Federal budget; today, this share is just above 1 percent. As late as 1985, $35 billion was spent on these activities (in 1997 figures). During 1987-1996, funding for International Affairs dropped by 34 percent (from $25 billion to $16 billion). Then, it started growing slowly: $18 billion in 1997; $19 billion in 1998; $23.4 billion in 1999; $24 billion (estimated) in 2000. It should be kept in mind, though, that the dynamics of these expenditures are somewhat different in the Historical Tables,61 but the important thing is that in recent years, the international affairs item amounts to roughly 0.2 percent of GDP, and just over 1 percent of the Federal budget. I shall revisit this topic; for now, let’s note that in the 2001 budget, Function 150 expenditures were approved by the president to the tune of $22.8 billion, less than in the previous two years.
Function 150 is divided into four unequal parts. The biggest sub-function is for foreign operations. In the draft for 2001, it amounted to $15.1 billion; of the thirty-two items the biggest ones were Multilateral Development Banks ($1.354 billion); Sustainable Development ($2.141 billion); Economic Support Fund ($2.313 billion); and Foreign Military Financing ($3.538 billion). There is also an item called Support for Eastern European Democracy, amounting to $610 million. This sum went up again after a dip in 2000, probably because democracy in Eastern Europe is experiencing problems again.
The second biggest subfunction is Commerce, Justice, and State; included here is funding for the Department of State itself. It grew to $6.816 billion in 2001 compared to $6.532 billion in 2000, but is still below the 1999 level ($6.951 billion). The other two subfunctions are relatively minor: Agriculture (food aid) amounts to $837 million, and Labor (funding for the U.S. Institute of Peace) takes just $14.45 million.
It is curious that China is entered in the list as a separate item; for instance, in 2000 it “cost” the U.S. $1.6 million. This amount includes Chinese-language training programs, trips through China, support for American citizens living in China, fine-tuning of the information system, modernization of equipment and tightening of security at the U.S. Embassy. (BiB, 2000) I draw your attention to this matter to contrast it to the Russian Embassy’s conduct toward Russian citizens in China. Without advance consultations, the latter may not even freely enter the premises of their own embassy.
60 Budget years mentioned are fiscal years that start on October 1.
61 See Historical Tables, Budget of the United States Government: Fiscal Year 2000.
The 21st Century: The World Without Russia
(Philosophical-sociological Essay)