PUBLIC POLICY UPDATE September 9, 2011 WASHINGTON UPDATE Senate Appropriations Committee sets 302(b) numbers; State, Foreign

Ops at $44.6 billion The Senate Appropriations Committee formally approved subcommittee discretionary spending allocations Wednesday, including $44.6 billion for the State, Foreign Operations (SFOps) Subcommittee for regular spending and $8.7 billion for that subcommittee for Overseas Contingency Operations (OCO). The Senate level for regular spending is about $5 billion higher than what the House SFOPs approved in late July. That difference is likely to grow as the House adjusts its numbers (probably lowering its SFOps level) to comply with the debt deal spending caps. The OCO level is as requested by the administration and the same as was proposed by the House (except that the Senate appears to fund the Pakistan Counterinsurgency Capability Fund (PCCF) through State as per the request, while the House funded the PCCF in Defense OCO). Notably, the Senate regular allocation for the Defense subcommittee$513 billionwas lower than the House by $17 billion. Therefore, relative to the House, the Senate is proposing more for SFOps, less for Defense. Reports are that the Senate Appropriations Committee will mark up the SFOps bill the week of Sept. 19, but time will tell if that date actually holds.

UPCOMING HEARINGS Hearing: Has Merida Evolved? Part One: The Evolution of Drug Cartels and the Threat to Mexicos Governance Committee: House Committee on Foreign AffairsSubcommittee on the Western Hemisphere Witness(es): Gary Shiffman, Georgetown Universitys Center for Peace and Security Studies Andrew Selee, Mexico Institute at the Woodrow Wilson Center for International Scholars Robert Bunker, Counter-OPFOR Corporation When: September 13, 2:00 p.m. Where: 2172 Rayburn House Office Building Contact: 202-225-5021 http://foreignaffairs.house.gov Hearing: Promoting Peace: Reexamining U.S. Aid to the Palestinian Authority, Part II Committee: House Committee on Foreign AffairsSubcommittee on the Middle East and South Asia Witness(es): Elliott Abrams, Council on Foreign Relations James Phillips, The Heritage Foundation Jonathan Schanzer, Ph.D., Foundation for Defense of Democracies 1

When: September 14, 2:00 p.m. Where: 2712 Rayburn House Office Building Contact: 202-225-5021 http://foreignaffairs.house.gov Hearing: The Trafficking Victims Protection Reauthorization Act: Renewing the Commitment to Victims of Human Trafficking Committee: Senate Judiciary Committee Witness(es): Mary Lou Leary, principal deputy assistant attorney general for the Office of Justice Programs Luis CdeBaca, ambassador-at-large in the State Departments Office to Monitor and Combat Trafficking in Persons Kelly Ryan, acting deputy assistant secretary for immigration and border security, Department of Homeland Security When: September 14, 10:00 a.m. Where: 226 Dirksen Senate Office Building Contact: 202-224-7703 http://judiciary.senate.gov HEARING SUMMARIES Afghanistan: Right Sizing the Development Footprint Senate Committee on Foreign Relations Thursday, September 8, 2011 Witnesses: Daniel Feldman, deputy to the special representative for Afghanistan and Pakistan, State Department Alex Thier, assistant to the administrator and director of the Office of Afghanistan and Pakistan Affairs, USAID

Opening Statements: Sen. Ben Cardin (D-MD) Afghanistan development is at a critical juncture as U.S. forces draw down. Foreign assistance is a vital tool in the national security toolbox: o U.S. has spent more in foreign aid in Afghanistan in the last year than any other country. Serious challenges remain: o In June 2011 a report was released detailing the prevalent corruption engendered by U.S. aid. o The status of women, gender inequality, and lack of political inclusivity for the vulnerable and marginalized remains of the worst worldwide. Moving forward, a comprehensive strategy that is necessary, achievable, and sustainable must be produced: o This strategy must ensure that the Afghan people can become contributors to their own government. Sen. Robert Corker (R-TN) U.S. presence in Afghanistanmilitary, civilian, and diplomatichas been highly disruptive to Afghan culture: 2

Even with the best of intentions, U.S. aid has created dependency, corruption, and distraction.

Daniel Feldman U.S. presence in Afghanistan has heretofore focused on disrupting, defeating and dismantling al Qaeda: o Three thrusts: military surge, civilian surge and diplomatic surge Now U.S. must shift from short-term, military to long-term strategy, to increase Afghan responsibility. Understands unique fiscal challenges at home in U.S., but funding must continue so that the Afghan government can increase their capacity. Alex Thier Improving governance, creating economic opportunity and support civil society is critical to solidifying military gains. Until now, goals have not fully taken into account limitations presented by Afghan reality: o Some programs have been designed to meet immediate needs, but now U.S. must focus on long-term achievement. This long-term approach has three components: o Build upon development progress over the last decade. o Focus on accountability and increased oversight of on-the-ground efforts. o Ensure sustainability of programs. Questioning: Sen. Ben Cardin (D-MD) 1. Reports indicate that less than 10 percent of Afghan economy is generated internally. How do we transition to a domestic, sustainable economy with the type of investments equal to those the U.S. currently spends? Feldman: o In a series of conferences (including the Bonn Conferences) State Department has been looking for political assurances from the Afghan government that it will do everything it possibly can to make incentives for greater revenue production. o Even more, Afghanistan needs a game plan for stability: If Afghanistan can achieve stability and security, domestic productivity and economic activity will inevitably rise. 2. But the clock is ticking. Can you give a projected timeline for this game plan? Thier: o To bridge the gap between the resources Afghanistan needs to function and what proportion of this cost Afghanistan can domestically bear, U.S. and Afghanistan can take two actions: Decrease cost of Afghanistan state. Increase internal revenue. 3. What industries will provide this revenue generation? Will there be a game plan soon? Thier: o Agriculture is the big production sector now, but regional trade is anticipated to be the long-term economic means. o Developing the energy sector has also been one of USAIDs programs for Afghan economic independence. 3

If U.S. and Afghanistan are going to succeed economically, aid and assistance must build for the present on what Afghans have traditionally done, i.e., farming, herding. Feldman: o Agriculture is the single-most important nonmilitary investment that U.S. can make in aid: Assistance connects farmers to markets, locally and across borders. o

Sen. Robert Corker (R-TN) 1. These plans seem fairly abstract. What is the feasibility of the Afghanistan government actually carrying out a budget? Feldman: o If U.S. forces use their remaining time building security, Afghanistan wont need to spend as much as it does currently on a 400,000 troops armed forces unit. o Still there are a lot of challenges in Afghan-led budgeting, but its not unworkable. 2. Is there something about Afghan culture that makes its politics particularly susceptible to corruption? Thier: o No, there is simply a lack of institutional structure and capacity that would provide checks on corruption. o Decreasing corruption will require strong leadership and a connection between citizen and state (i.e., accountability). 3. So there isnt a proper justice system? Feldman: o On the ground, work has until now focused more on infrastructural prison reform rather than institutional changeswere working on that. Sen. Robert Menendez (D-NJ) 1. Mere expenditure of funds reflects little in actual achievement. How will you ensure that your plans are achievable, necessary, and sustainable? Thier o USAID is taking unprecedented steps in emphasizing accountability and transparency. USAID has limited the number of subcontractors employed, and tripled the number of staff on the ground who oversee contractors. Will again double oversight staff in the next year. o USAID is also adding a year to its contract officers tours abroad in order to build relationships and cultural understanding, and to improve consistency in management of contractor projects. 2. Norway and the IMF have frozen funding/aid to Afghanistan. Should the U.S. be concerned? Feldman: o If Congress is concerned that the U.S. should do the same (freeze aid), it is important to note that U.S. is the most stringent in its aid stipulations. o State Department drives a hard bargain, and has withheld aid before until Afghan government complies with stipulations.

Sen. Mark Udall (D-CO) 1. A UN report was released recently detailing systematic torture in Afghan jails. Is the Afghan government looking into this report? Feldman: o The government of Afghanistan is investigating reports of abuse in their prison system, and is taking the situation very seriously. 2. Congress is concerned that U.S. aid dollars diverted to corruption are used to fund the insurgencies that U.S. works to defeat. Have you heard anything about this allegation? Thier: o Disagree: there is no evidence whatsoever to suggest that corruption resulting from U.S. aid is going to the insurgents financing.

Addressing the Humanitarian Emergency in East Africa House Foreign Affairs CommitteeAfrica, Global Health and Human Rights Subcommittee September 8, 2011 Witnesses: Panel I: Rajakumari Jandhyala, deputy assistant administrator, Bureau for Africa, USAID Panel II: Katherine Zimmerman, American Enterprise Institute Kent Hill, World Vision Shannon Scriber, Oxfam America Panel I: Opening Statements: Chair Christopher H. Smith (R-NJ) Underlined the severity of the current crisis in the Horn of Africa: o The worst famine since the 1950s. o Recent poor rains and subsequent forced migration are exacerbating the problem. o Aid organizations working in dangerous areas of southern Somalia are exhibiting bravery; very unfortunate that they find themselves worrying about legal consequences of providing aid if any of it were to fall into the hands of al-Shabab. Ranking Member Donald M. Payne (D-NJ) Undoubtedly the worst humanitarian crisis in the world today: o Food security for 12 million people is affected. o Somalia is undoubtedly the worst hit; even the previous bread-basket regions of relative agricultural productivity in the country are severely affected. o Over 2.4 million people have already fled their homes in search of food and water, nearly 900,000 of whom have entered into neighboring countries.

Rajakumari Jandhyala Droughts of this nature are cyclical, and with the early warning systems available; we must continue to use resources to prepare for these events in advance; more effective use of money than responding after the event: o USAID cooperated with farmers to encourage them to sell produce early this year so as to gain income in preparation for food shortages and rising prices. o Comprehensive agricultural plans by the Ethiopian government that the U.S. government is supportingbelieve this program alone has the capacity to help 7.5 million people survive, who may not have otherwise. o Pastoralists undoubtedly hit hardest; focus on new energy systems and improving infrastructure. Newly-independent South Sudan affected by the waves of migration, and USAID has identified five core challenges this new state now faces: o Transparency and accountability; o Human capital development; o Natural resource and revenue management (oil and non-oil); o Delivery of social services; and o Creating an environment conducive to private sector investment. Questioning: Chair Christopher H. Smith (R-NJ) 1. There was an early warning system in place, which alerted us that a drought and probable famine was on its way. Last year, field operatives were able to preposition food and supplies in the key target areas as a result. Was that action as swift as it could and should have been? Jandhyala: We worked with colleagues and partners tracking the situation: o An enormous effort was put into reaching out to our partners to provide information. o The biggest constraint to this end was, and often is, working with the relevant home country government. 2. Tell us more about the food voucher program. Has it been successful? Were many vouchers stolen, or did it provide any competition to local merchants? Jandhyala: On the whole, it has been successful: o We tried to find ways of minimizing our impact with regard to competition. o Sometimes visibility restricts our ability to track our success, and we are working on improving our monitoring and tracking system. o We are now assessing how to most effectively expand the voucher programthese decisions will be made within the next few weeks. 3. Non-U.S.-supported NGOs are not operating as effectively as they might over fears of a lawsuit on the grounds of unintentionally aiding and abetting al-Shabab. What future action on this issue of licensing will we see? Jandhyala: We are working to see how we can resolve this issue on a case-by-case basis. Additional information will be forthcoming in the next few weeks, and discussions are ongoing.

4. According to the United Nations, there is a $1 billion funding gap. In all crises, money is often drawn down from multiple accountswill there be additional U.S. funding? $600 million is a good start, but we need to provide more. Saudi Arabia has stepped up its efforts to finance aid operations; could they diplomatically engage with al-Shabab to open up food distribution operations? Jandhyala: Our most relevant partners here are Turkey and Saudi Arabia, and the UN must work towards harnessing all funding sources to make up the gap. o Nontraditional partners have provided leadership in funding. o The overarching problem at the moment is security and access, not funding. 5. What action is being taken to ensure sex trafficking and gender-based violence are being stopped? What accountability mechanisms are in place? Jandhyala: We are working with UNHCR and the Kenyan government to better protect women. That is an absolute priority, and we are very concerned. General Steinberg has made this a major commitment. Ranking Member Donald M. Payne (D-NJ) 1. How are you helping those who cannot get into the camps? Are people being serviced as if they were in the camps? Jandhyala: We are working with the Kenyan government to open a new site to reduce pressure on existing camps: o There is a full effort underway to be creative in resolving this issue, and we are led by needs and services. o We anticipate the arrival of 1,500 people per day, but it is very hard to say in which physical location they belong. 2. A number of Somalis have gone into Ethiopia, and it is great that they have opened their borders to allow the Somalis into the eastern areas. However, there are reports of less than uniform delivery of relief across these particular areas. Have you heard similar complaints at State or USAID? Jandhyala: Not aware of anythingwill check and report back. 3. Eritrea had a bumper crop last year. Have you had a conversation with its government? Is there a lack of cooperation from the government? Hopefully there is an ongoing conversation between U.S. officials and their Eritrean counterparts. Jandhyala: There is no USAID mission in Eritrea. However, the European Union is a partner of the Eritrean government, and we largely work through them to have a dialogue with the Eritreans, and to assess the state of crops there. 4. With regard to South Sudan, what happened to the conference scheduled to begin two to three weeks from now? Jandhyala: The president has made a commitment for representatives of South Sudan to come to Washington, D.C.: o Provides an opportunity to meet a variety of new partners that could help them to achieve their vision. o South Sudanese Cabinet was installed last Friday. 7

o o

There was no time before the conference for them to come with a truly cohesive policy vision prepared. We wanted to give additional time for them to engage with their development issues, but that commitment remains and such a visit will take place at some stage.

Rep. Russ Carnahan (D-MO) 1. Give us an update with regard to the Climate Change Initiative in the Horn? Jandhyala: Water shortages and failing rains are leading to dying livestock, which is a huge issue. Working with local governments, for example in Ethiopia, to come up with more sustainable ways of managing their assets when we know a disaster is on its wayfor example, commercial stocking programs. Rep. Karen Bass (D-CA) 1. How is USAID meeting its long-term goals, particularly taking into account the cyclical nature of droughts and subsequent famines? Jandhyala: We are looking to improve trade, financial services, and are coming up with new schemes such as an innovative mobile banking scheme: o A vibrant economy will be crucial in the long-term. We have learned from the lessons of the 80s and 90s, and are focused on mitigation so that as far as is possible, we dont face such a severe situation again in the coming years. Panel II: Opening Statements: Katherine Zimmerman Al-Shababs position has evolved over recent years: o Since 2009, it has progressively banned Western organizations with a supposedly Christian agenda that, it claims, do not pursue the interest of Somalis. A particular target of the al-Shabab leadership is the UN World Food Program, intimidated to the extent that they have not operated in southern Somalia since 300 sacks of their food were burned by al-Shabab in 2009. Kent Hill Somalia is the hardest country to operate in of all those 100 countries with which World Vision works: o Importance of smart aidrecognize cyclical nature of droughts. o Famines are entirely preventable with the right response of pre-empting the event and pooling resources in preparation. o Political instability or anarchy complicates the situation; if we cannot address governance issues, our attempts to help in humanitarian ways will always be limited, and thus this must also form a key part of our assistance. Shannon Scriber Pastoralists very hard-hit by the drought all over the Horn. 8

Water, sanitation, cash transfers, livestock rehabilitation are all crucial in relieving plight of local population. Oxfam America is responding to the needs of 64,000 people in the camps, and to the 60,000 people on the physical outskirts of the camp who are unable to gain access into the overflowing. Transparency and information sharing must be improved. Despite early warning in August 2010, little was done until May 2011 whenas predictedthe rains failed. NGOs and the international community as a whole must do a better job if future food emergencies are to be avoided. Disaster risk reduction (DRR): o In 2009, DRR made up only 0.5 percent of total assistance. o DRR is much cheaper than having to respond to a disaster, since the magnitude is reduced significantly. o Builds community resilience.

Questioning: Chair Christopher H. Smith (R-NJ) 1. Are the NGOs reaching out to Persian Gulf potential donors, especially Saudi Arabia? Perhaps a jointly-signed letter to the government and king could mobilize this process? Scriber o We have outreach with donors in Saudi Arabia and offices there; we have pushed for donations and will continue to do so. Hill o Interesting ideadont see why InterAction and other NGOs couldnt encourage them to do it. o Islamic Relief is a crucial organization here; there may be specific things in the field they can do that we cannot do. o What are they doing to encourage Islamic governments to play a more active role? Ranking Member Donald M. Payne (D-NJ) 1. Is there an attempt to gain access to the al-Shabab leadership? Have any of you worked with U.S.-based Somalis with a view to potentially gaining access to chains of command back in Somalia? Scriber o That is something we are discussing and considering doing. o Diaspora could potentially help, but its the local communities in Somalia which matter most. o If you get local community buy-in," and those locals protect aid workers, then they are the first line of defense and security.

ARTICLES AND REPORTS Disclaimer: Articles linked in the Update are intended to provide a dashboard view of newsworthy and topical issues from popular news outlets that will be of interest to readers of the Update. The

articles are an information sharing vehicle rather than an advocacy tool. They are in no way representative of the views of InterAction or the U.S. NGO community as a whole. The Press Association Aug. 29: Hot El Nino weather blamed for wars A study in the journal Nature suggests that the weather phenomenon El Nio increases the risk of civil war dramatically. A recent study of 175 countries showed that violence was twice as likely during El Nio than during La Nia, which brings cooler conditions and more rainfall. New York Times Sept. 5: U.N. Officials Say Famine Is Widening in Somalia The UN announced on Monday that Somalias famine had spread to a sixth area, the Bay region, with officials warning that 750,000 people could die in the next few months. Concern is turning to disease in the camps, with reports of incidents of measles, cholera, malaria and typhoid. Washington Post Sept. 8: Global food prices likely to stay at historic highs, threatening food riots, famine World food prices will probably stay at historically high levels this year due to a lack of stockpiles. They may fall 2-3 percent by the end of the year, but a recurrence of the 2008 price fall is unlikely. As a result, the worlds hungry populace may soon exceed 1 billion again. Foreign Policy: The Cable Sept. 8: Berman unveils his foreign aid reform bill Rep. Howard Berman (D-CA) unveiled the Global Partnerships Act of 2011, which seeks to reform the way that the U.S. implements and monitors its foreign assistance programs. Since the Democrats are currently the minority party in the House, there is no clear path forward for his draft legislation. AlertNet Sept. 9: Security key to ending Somalia famine, say African leaders Leaders of Kenya, Ethiopia, Tanzania, Somalia and South Sudan met to discuss possible solutions to the famine in the Horn of Africa, which has affected approximately 13 million people. In a communiqu, they called for AMISOM and the Somali Transitional Federal Government to extend their control over the country.

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