United States General Accounting Office

GAO Briefing Report to the Chairman,

Committee on the Budget, House of

Representatives

May 1995 PEACE OPERATIONS

Estimated Fiscal Year

1995 Costs to the

United States

GAO/NSIAD-95-138BR

GAO United States

General Accounting Office

Washington, D.C. 20548

National Security and

International Affairs Division

B-260431 

May 3, 1995

The Honorable John R. Kasich

Chairman, Committee on the Budget

House of Representatives

Dear Mr. Chairman:

Several U.S. agencies and departments have participated to some extent in

peace operations in fiscal year 1995 to date. In response to your request,

we are providing information on (1) these agencies’ potential fiscal year

1995 costs of peace operations, (2) the potential U.S. share of U.N.

assessments for peace operations, and (3) the manner in which the annual

defense budget provides the Department of Defense (DOD) with the

capability to participate in peace operations. On April 19, 1995, we briefed

your staff on these issues.

Background As fiscal year 1995 began, the United States was involved in a number of

peace operations around the world, including operations in Haiti, Bosnia,

and Southwest Asia. DOD and the Department of State are the two lead

agencies involved in U.S. peace operations. The U.S. Agency for

International Development is the primary agency responsible for providing

humanitarian assistance and coordinating U.S. donations of food with the

Department of Agriculture. The other agencies involved in peace

operations are the Departments of Justice, Commerce, Treasury,

Transportation, and Health and Human Services.

The costs of most agencies’ and departments’ participation in peace

operations are paid from their congressional appropriations. These costs

include expenditures for (1) direct participation of U.S. military forces,

(2) the U.S. share of U.N. peacekeeping assessments, and (3) humanitarian

assistance. We previously reported on U.S. and U.N. activities related to

peace operations, including their cost and funding, and on DOD’s fiscal year

1994 cost and funding for peace operations.1

Results in Brief Federal agencies’ and departments’ participation in peace operations is

estimated to cost $3.7 billion during fiscal year 1995; $672 million of this

estimated cost has not been funded. This estimated cost could increase if

1

Peace Operations: Information on U.S. and U.N. Activities (GAO/NSIAD-95-102BR, Feb. 11, 1995) and

Peace Operations: DOD’s Incremental Costs and Funding for Fiscal Year 1994 (GAO/NSIAD-95-119BR,

Apr. 18, 1995).

Page 1 GAO/NSIAD-95-138BR Peace Operations
B-260431 

the need for new operations arises or current operations are expanded.

About $1.8 billion, or 49 percent, of the estimated cost is DOD’s estimated

incremental costs2

 for its involvement in peace operations. These

incremental costs include (1) special payments, including imminent

danger pay, family separation allowance, and foreign duty pay for troops

deployed to certain peace operations; (2) operation and maintenance

expenses in support of deployed forces; (3) procurement of items such as

forklifts and fire support vehicles; and (4) limited military construction at

Guantanamo Bay, Cuba.

Several nondefense agencies and departments will bear the remaining

estimated U.S. government costs of $1.9 billion. For example, the

estimated U.S. share of special U.N. peacekeeping assessments, which are

paid by the Department of State, is $992.1 million for fiscal year 1995

peace operations. However, the expansion of existing missions or the

approval of new missions could increase U.N. peacekeeping costs and

hence the U.S. share of those costs. According to U.N. mission planners,

several missions could undergo changes or expansions, including the

missions in Western Sahara and Rwanda, and Burundi, which is

considered a “hot spot,” could be the site of a new mission. No estimate is

available yet for the cost of a mission in Burundi.

DOD’s annual budget provides it with the capability to conduct peace

operations but does not fund the operations’ incremental costs. As a

means of determining how funds are spent, programs can be divided into

“investment” and “support” categories. Investment programs fund the

procurement of defense capital goods, such as weapons and facilities;

support programs fund the operation and maintenance of defense forces

and equipment. Funding for each of these categories contributes to

military capability in different ways. Investment funding builds a stock of

equipment that lasts for many years. Support funding provides the people

and other resources to operate and maintain the equipment. This funding

makes it possible for U.S. military forces to engage in peace as well as

more traditional military operations. However, it would be difficult to

estimate with any reasonable assurance what portion of investment and

support costs should be applied to peace operations.

Scope and

Methodology

To obtain data on estimated U.S. peace operations costs, we met with

representatives of the Departments of Defense, State, Agriculture,

2

As defined by the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508), for use during Operation

Desert Shield/Storm, incremental costs are only those costs that would not have been incurred except

for the operation. DOD is still using this definition.

Page 2 GAO/NSIAD-95-138BR Peace Operations
B-260431 

Treasury, Commerce, Transportation, Justice, Health and Human Services,

the Office of Management and Budget, and the U.S. Agency for

International Development. At each organization, we discussed how peace

operation costs are budgeted and accounted for and asked that they

provide data on projected fiscal year 1995 costs for peace operations. For

DOD’s estimated costs of contingency operations, we used the data

contained in DOD’s request for supplemental appropriations. We reviewed

that data to distinguish between costs related to operations that occurred

in fiscal year 1994 and those that are expected to occur in fiscal year 1995.

For nondefense agencies and departments, we included costs for those

programs or activities that were related to ongoing peace operations. We

did not independently verify reported costs.

To identify the U.S. share of U.N. peacekeeping assessments, we

interviewed and obtained documents from State Department officials

responsible for these matters as well as finance officials at the U.N.

Controller’s Office and Department of Peacekeeping Operations. We

compared the State Department’s estimate with the U.N. estimate of the

cost of peacekeeping missions to ascertain whether they were consistent.

In addition, we interviewed officials at the U.S. Mission to the United

Nations. We also reviewed U.N. documents on the financing of individual

missions and the status of member states’ peacekeeping contributions.

To obtain information on how the annual defense budget permits DOD to

participate in peace operations, we reviewed DOD financial documents

describing the purposes for which the funds in DOD’s major appropriations

accounts can be spent. We also reviewed the Secretary of Defense’s report

on the bottom-up review to ascertain which military forces are expected to

participate in peace operations.

We did our work between December 1994 and April 1995 in accordance

with generally accepted government auditing standards. We provided a

draft copy of this briefing report to the organizations involved and

incorporated their comments where appropriate.

Section I through III includes the detailed information from our briefing to

your staff and appendix I shows a breakout, by country, of the estimated

U.S. share of special U.N. assessments for peace operations for fiscal year

1995.

Page 3 GAO/NSIAD-95-138BR Peace Operations
B-260431 

We are providing copies of this report to the Chairmen of the Senate and

House Committees on Appropriations, the Senate Committees on Armed

Services and Foreign Relations, and the House Committees on National

Security and International Relations. We will also send copies to the

Secretaries of Defense, State, Agriculture, Treasury, Transportation,

Justice, Commerce, and Health and Human Services; the Administrator,

U.S. Agency for International Development; the Director, Office of

Management and Budget; and the Secretary General of the United Nations.

Copies will also be made available to others upon request.

If you or your staff have any questions about this report, please contact me

at (202) 512-3504. The major contributors to this report are listed in

appendix II.

Sincerely yours,

Richard Davis

Director, National Security

 Analysis

Page 4 GAO/NSIAD-95-138BR Peace Operations
Page 5 GAO/NSIAD-95-138BR Peace Operations
Contents

Letter 1

Briefing Section I 

Background

8

U.S. Participation in Peace Operations 8

Types of Peace Operations Involving DOD 10

Principal Civilian Agencies Involved in Peace Operations 12

Other Civilian Agencies Involved in Peace Operations 14

Briefing Section II 

Costs and Funding for

Peace Operations

16

Estimated Costs for Peace Operations 16

DOD’s Estimated Incremental Costs for Peace Operations 18

Estimated State Department Costs for Peace Operations 20

Factors That Could Affect U.N. Peacekeeping Assessments 22

Briefing Section III 

How DOD’s Budget

Supports Peace

Operations

24

DOD’s Budget and Peace Operations 24

How Investment Funding Supports Peace Operations 26

How Support Funds Facilitate Peace Operations 28

Appendix I 

U.N. Peacekeeping

Assessments

30

Estimated U.S. Share of Special U.N. Peacekeeping Assessments 30

Appendix II 

Major Contributors to

This Report

31

Abbreviations

DOD Department of Defense

USAID U.S. Agency for International Development

Page 6 GAO/NSIAD-95-138BR Peace Operations
Page 7 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

GAO U.S. Participation in Peace Operations

Military support

Troops

Logistical support

Financial support

U.N. peacekeeping assessments

Funds to humanitarian organizations

Humanitarian aid

Food

Refugee assistance

Page 8 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

The United States participates in peace operations in three principal ways.

One way is with direct military support. Since October 1994, U.S. military

forces have been used in several locales, including Haiti, the region in and

around former Yugoslavia, and Somalia. At the peak of the U.S. military

intervention in Haiti in October 1994, the United States had about 39,000

military personnel deployed in and around Haiti. As of January 1995, that

number had fallen to about 5,700. The U.S. military has also provided

logistical support for peace operations. For example, about 700 military

personnel have been involved in providing humanitarian supplies to

Bosnia through relief flights and airdrops.

A second way in which the United States participates in peace operations

is through financial support. The largest amount of financial support is

that provided to the United Nations to pay for the costs of U.N.

peacekeeping missions. Most U.N. peacekeeping missions are financed

through special assessments. The United Nations has assigned a

peacekeeping assessment rate to each member country. The United States

is currently assessed 31.2 percent of U.N. peacekeeping budgets, by far the

largest share of any U.N. member country. Prior to the dissolution of the

Soviet Union, the U.S. peacekeeping assessment rate was 30.4 percent.

The United States will continue to pay that rate through fiscal year 1995.

The United States has informed the United Nations that as of October 1,

1995, it plans to pay U.N. peacekeeping assessments at a rate of

25 percent.

A third way in which the United States participates in peace operations is

by providing support for humanitarian and refugee programs. The United

States does this through donations to international organizations,

including the United Nations, and to private voluntary humanitarian

organizations that are involved in providing humanitarian aid and

assistance. This assistance can be in the form of financial aid and other

donations, such as agricultural commodities, and through the processing

of and caring for refugees.

Page 9 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

GAO Types of Peace Operations

 Involving DOD

Peace operations are part of DOD's contingency 

operations.

Most operations in which the United States 

participated support U.N.-authorized peace 

operations.

DOD has changed its characterization of some 

peace operations.

Page 10 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

Peace operations is a broad and imprecise term. The Secretary of

Defense’s 1995 Annual Report to the President and the Congress includes

peace operations under the broader category termed contingency

operations. The Secretary’s report describes contingency operations as

military operations that go beyond the routine deployment or stationing of

U.S. forces abroad but fall short of large-scale theater warfare. Included

under the term contingency operations are (1) smaller-scale combat

operations such as the military intervention in Panama; (2) peace

operations such as the recently concluded operation in Somalia; and

(3) other key missions, including humanitarian and refugee assistance,

such as last year’s support of Rwandan refugees.

Most of the operations in which the United States is participating in fiscal

year 1995 are in support of U.N.-authorized peace operations. However,

the Department of Defense’s (DOD) characterization of individual

operations as combat, peace, or humanitarian is in a state of flux. DOD has

characterized some operations that are being conducted in support of

U.N.-authorized peace operations as humanitarian operations. It has also

changed its characterization of operations from that in the Secretary of

Defense’s 1994 Annual Report. For example, the Secretary’s 1994 report

characterized DOD’s operation in Northern Iraq as U.S. forces acting in

support of U.N. peace operations, while the Secretary’s 1995 report

characterizes it as humanitarian and refugee assistance.

Some operations that involve the United States in fiscal year 1995 are

unilateral operations. These include the increase in U.S. military capability

in South Korea in response to heightened tensions and the enforcement of

a revised U.S. migration policy designed to prevent Cuban migrants from

reaching the United States.

Regardless of how DOD characterizes each operation, a common

characteristic of these operations is that their incremental costs are not

included in its annual budget. To fund these operations, DOD has to absorb

their costs within its existing budget and forgo planned activities or seek

supplemental appropriations.

Page 11 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

GAO Principal Civilian Agencies Involved in 

Peace Operations

Department of State

Payments to United Nations

Payments to other organizations

U.S. Agency for International Development

Humanitarian assistance

Food and medical needs

Page 12 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

Civilian federal agencies and departments involved in peace operations

carry out a variety of activities. Among the civilian agencies and

departments, the Department of State and the U.S. Agency for

International Development (USAID) have the largest roles, both financially

and programmatically.

The State Department is one of the two lead agencies (DOD is the other)

responsible for planning and implementing U.S. peace operations. In

addition, the State Department pays the United Nations for the

U.S.-assessed share of U.N peacekeeping budgets as well as additional

voluntary contributions. State also provides funding to other organizations

to support multinational forces, provide police monitors, enforce

economic sanctions, and assist with refugees.

USAID provides humanitarian assistance through U.N. and private

organizations and directly to individual countries in the form of food,

medical care, and other humanitarian and economic recovery assistance.

Agencies like USAID and the Department of Agriculture participate in these

operations based on humanitarian needs. Their programs are often

conducted in concert with peace operations. In Haiti, USAID supports an

expanded feeding program and extended health services implemented

through private voluntary organizations. It also supports efforts to help

small farmers. In fiscal year 1995, it is sponsoring programs in 21

countries. However, not every effort is undertaken to support U.S. or

U.N.-led peace operations. We excluded the costs of those programs

unrelated to ongoing peace operations. For example, the United States has

supported U.N. peacekeeping forces in Israel since 1948. However, we did

not include a $1.2 billion USAID program to provide economic support to

Israel because the overall goal is not to support a U.N. peace operation.

Page 13 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

GAO Other Civilian Agencies Involved in 

Peace Operations

Departments of Agriculture, Justice, Commerce, and Health 

and Human Services

Agricultural commodities and food

Disease control

Migrant processing

Departments of Treasury and Transportation

Sanctions enforcement

Page 14 GAO/NSIAD-95-138BR Peace Operations
Briefing Section I 

Background

Other federal agencies play a more limited role in support of peace

operations. The Department of Agriculture donates agricultural

commodities to countries as part of the Food for Progress Program.

Agriculture also provides concessional loans for the purchase of U.S.

agricultural commodities as part of the Food for Peace Program. Although

these commodities provide humanitarian relief, program participation is

based on market development potential and food need rather than

involvement in peace operations.

The Department of Justice expects to incur expenses associated with

peace operations in Haiti, Bosnia, Somalia, and Cuba. For example, the

Community Relations Service, an organization of the Department of

Justice, has cooperative agreements with domestic voluntary agencies to

assist Cuban and Haitian migrants. The Department of Commerce expects

to broaden commercial programs and support for U.S. businesses in

countries classified as peacekeeping areas, including Haiti and Macedonia.

The Department of Health and Human Services provides disease control

services in some countries where peace operations are ongoing.

The Department of the Treasury and the Department of Transportation

also expect to incur expenses relating to peace operations. For example,

the Coast Guard, an organization of the Department of Transportation, is

providing support to the Navy in the enforcement of U.N.-U.S. sanctions in

Southwest Asia. The Department of the Treasury provides personnel to

enforce sanctions supporting the U.S. policy regarding the former

Yugoslavia.

Page 15 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

GAO Estimated Costs For Peace Operations

Dollars in millions

Estimated fiscal 

Agency/Department year 1995 Unfunded

Defense $1,820.7 0

State 1,195.2 $672.0

U.S. Agency for International 

Development 559.0 0

Agriculture 69.3 0

Justice 24.6 0

Treasury 2.0 0

Transportation

(Coast Guard) 0.4 0

Commerce 0.2 0

Health and Human Services ______ 0

Total $3,671.4 $672.0

a

b

aDOD operations include both activities in support of U.N.-authorized peace operations, such as

the one in former Yugoslavia, and unilateral U.S. military operations, such as the operation in

Cuba enforcing U.S. migration policy.

bThe Department of Health and Human Services plans to spend about $30,000 in fiscal year

1995.

Page 16 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

The total estimated fiscal year 1995 cost of U.S. participation in peace

operations is about $3.7 billion. DOD has the largest portion of this amount,

with $1.8 billion in estimated incremental costs, or about 49 percent of the

total estimated cost. DOD’s estimated incremental costs include (1) special

payments for imminent danger pay, family separation allowance, and

foreign duty pay for troops deployed to certain peace operations;

(2) operation and maintenance expenses in support of deployed forces;

(3) the procurement of items such as forklifts and fire support vehicles;

and (4) limited military construction at Guantanamo Bay, Cuba.

In addition to DOD’s estimated 1995 incremental costs of $1.8 billion, DOD

estimates that it will pay $274.4 million in costs related to fiscal year 1994

peace operations. These costs include $126.3 million to liquidate Feed and

Forage Act obligations1

 and $148.1 million to replenish stock items used in

1994 in support of peace operations.2

 Also, DOD’s estimated incremental

cost for fiscal year 1995 does not include $461.6 million for Operation

Vigilant Warrior, the U.S. response to threatening Iraqi troop movements

near Kuwait’s border. We have not characterized this operation as a peace

operation.

The State Department has the second largest estimated cost for peace

operations, about $1.2 billion, or about 32 percent of the total estimated

U.S. costs. The bulk of the State Department’s cost is the estimated U.S.

share of special U.N. peacekeeping assessments ($992.1 million), which is

discussed in depth later in this report. State also incurs costs for additional

voluntary peacekeeping contributions and for refugee programs.

The other U.S. agencies and departments that participate in peace

operations had a combined estimated cost of $655.5 million, or 18 percent

of the total.3 USAID has the largest share of this estimated

cost—$559 million.

1

DOD invoked its Feed and Forage Act authority in fiscal year 1994, under 41 U.S.C. section 11, to

incur obligations in advance of appropriations for expenses associated with Haiti.

2

Regarding the replenishment of stocks, we previously reported that DOD’s inventory management is 1

of 18 areas that are at “high risk” for fraud, waste, abuse, and mismanagement. We believe that

substantial savings could be realized by reducing DOD’s inventory of spare and repair parts, medical

supplies, and other support items.

3

We did not include costs that are reimbursed by DOD or the State Department. In addition, it should

be noted that the proportion of estimated U.S. costs for DOD, the State Department, and other

agencies and departments do not add due to rounding.

Page 17 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

GAO DOD's Estimated Incremental Costs for 

Peace Operations

Dollars in millions

Operation Army Navy Air Force Other Total DOD

Southwest Asia $ 45.7 $ 60.8 $ 461.4 $ 11.0 $ 578.9

Haiti 385.1 42.2 19.4 18.6 465.3

Cuba 81.0 241.6 32.8 14.7 370.1

Bosnia 41.4 49.9 211.7 8.9 311.9

Korea 0.5 30.6 25.0 2.9 59.0

Somalia 5.1 12.2 0 0 17.3

Rwanda 3.0 0 14.2 0 17.2

Commonwealth of 

Independent 

States

___1.0 ___0 ___0 ____0 ____1.0

Total $ 562.8 $ 437.3 $ 764.5 $ 56.1 $1,820.7

a

aAs mentioned previously, DOD’s operations include both activities in support of U.N.-authorized

peace operations, such as the one in former Yugoslavia, and unilateral U.S. military operations,

such as operations in Cuba enforcing the U.S. migration policy.

Page 18 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

Most of DOD’s estimated incremental costs are for operations in four

areas—Southwest Asia, Haiti, Cuba, and Bosnia. These costs total about

$1.7 billion, or 94 percent of DOD’s total estimated incremental costs.

Within Southwest Asia, DOD is participating in operations to (1) enforce

U.N. sanctions against Iraq, (2) enforce the no-fly zone over both northern

and southern Iraq, and (3) provide humanitarian relief to the population of

northern Iraq.

Among the military services, the Army and the Air Force have the largest

share of estimated incremental costs—$562.8 million and $764.5 million,

respectively. Most of the Army’s costs are for the operation in Haiti. Most

of the Air Force’s costs are for the operations in Southwest Asia and

Bosnia. The Navy has estimated costs of $437.3 million, most of which are

for the operation involving Cuba. The combined estimated cost of other

defense agencies, including the U.S. Special Operations Command, the

Defense Health Program, and the Defense Intelligence Agency, is

$56.1 million, which is spread among several operations.

DOD’s fiscal year 1995 incremental costs could be more than the estimated

$1.8 billion because of new or expanded operations. This was the case in

fiscal year 1994. For example, in February 1994, DOD requested a

supplemental appropriation of $1.2 billion to cover anticipated

incremental costs, primarily for operations in Somalia, Bosnia, Iraq, and

Haiti. In July 1994, DOD requested another supplemental appropriation,

which when approved totaled $299.3 million, to cover costs for the new

operations in Cuba and Rwanda. DOD ended fiscal year 1994 with final

incremental costs of $1.9 billion, or about $410 million more than its

supplemental requests.

Page 19 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

GAO Estimated State Department Costs

for Peace Operations

Dollars in millions

Estimated fiscal

 year 1995 cost Unfunded

Special U.N. peacekeeping 

 assessments $ 992.1 $672.0

Additional peacekeeping 

 assessments paid through

 regular U.N. budget 9.9 0

Other 193.2 ____0

Total $1,195.2 $672.0

Page 20 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

As previously discussed, the State Department has estimated costs of 

$1.2 billion for peace operations. The bulk of these costs, $992.1 million, is

the estimated U.S. share of special U.N. peacekeeping assessments. An

additional $9.9 million is the estimated cost of supporting U.N.

peacekeeping operations in Israel and India/Pakistan. The United States

pays for this cost through its regular payment to the U.N. budget.

In its fiscal year 1995 appropriation, State received $533.3 million to pay

assessed expenses of international peacekeeping activities. The

appropriation act permitted State to use some of this appropriation to pay

arrearages accumulated in fiscal year 1994 and earlier periods. As of

January 1995, State had paid $213.2 million for these arrearages. The

remaining $320.1 million of its fiscal year 1995 appropriation was available

to pay 1995 U.N. peacekeeping assessments. Based on its estimated share

of special U.N. peacekeeping assessments, which as of March 1995 was

expected to total $992.1 million, State would have unfunded assessments

of $672 million.4

 Legislation under congressional consideration would

apply some of DOD’s peace operation costs as credit toward U.N.

assessments, although the United Nations would still assess the United

States for 31.2 percent of the expenses of international peacekeeping.

Of the remaining $193.2 million in estimated fiscal year 1995 costs, the

majority ($119 million) is for refugee programs in the former Yugoslavia,

Mozambique, and Rwanda. The balance of State’s estimated costs are for

additional voluntary peacekeeping contributions, which are paid from

State’s other appropriated funds.

4

The $9.9 million in peacekeeping payments financed through the regular U.N. budget is fully funded.

Page 21 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

GAO Factors That Could Affect U.N. 

Peacekeeping Assessments

U.N. estimates assume no major mission changes 

from prior fiscal year except for missions expected 

to end in 1995.

Costs may increase due to new or expanded 

missions.

Page 22 GAO/NSIAD-95-138BR Peace Operations
Briefing Section II 

Costs and Funding for Peace Operations

U.N. estimates of peacekeeping costs totaled $3.2 billion for the 15

missions that were financed through special U.N. peacekeeping

assessments and continued into 1995. According to U.N. officials, it is

difficult to predict the costs of peace operations because events can

change the nature of the mission and its costs. This estimate reflected the

closure of three peacekeeping missions in early 1995; changes in the

missions in Angola, Rwanda, and Western Sahara; and the maintenance of

the other missions at their 1994 level throughout 1995. Regarding the

closure of peacekeeping missions, the missions in Somalia and

Mozambique closed in the first quarter of 1995 and the mission in El

Salvador will end on April 30, 1995.

The expansion of existing missions or approval of new missions could

increase U.N. peacekeeping costs and hence the U.S. share of those costs.

The peace operation with the greatest uncertainty, complexity, and cost is

the U.N. Protection Force in the former Yugoslavia, which includes Bosnia

and Croatia. The United Nations estimated that maintaining the mission at

its current level will cost $1.7 billion in 1995; this amount is included in its

total peacekeeping estimate of $3.2 billion. On March 31, 1995, the United

Nations restructured this mission under three separate mandates. Cost

estimates for the missions under the separate mandates have not yet been

developed.

In early February 1995, U.N. mission planners projected that several

missions could undergo changes or expansions. For example, the mission

in Lebanon could be reduced, while the missions in Angola, Haiti, Western

Sahara, and Rwanda could expand. In addition, U.N. mission planners

believe that Burundi, which is considered a “hot spot,” could be the site of

a new mission. The U.N. cost estimate reflects the expanded missions in

Angola, Haiti, and Rwanda and a partial expansion in Western Sahara. No

estimate is yet available for the cost of a mission in Burundi.

Page 23 GAO/NSIAD-95-138BR Peace Operations
Briefing Section III 

How DOD’s Budget Supports Peace

Operations

GAO DOD's Budget and Peace Operations

DOD budgets to be ready to conduct military 

operations, but not to conduct them.

Defense programs can be divided into two major 

categories:

Investment

Support

Investment funding builds a stock of equipment and 

facilities.

Support funding provides the personnel and 

capability to operate and maintain the equipment.

Page 24 GAO/NSIAD-95-138BR Peace Operations
Briefing Section III 

How DOD’s Budget Supports Peace

Operations

DOD does not budget for the cost of military operations or contingencies,

including peace operations. It budgets to be ready to conduct such

operations. The Congress provides DOD with annual appropriations, which

enables it to be ready to conduct operations the National Command

Authority directs. During fiscal years 1985-94, the Congress provided DOD

with $2.8 trillion for military programs.

The Congressional Research Service has reported that many analysts find

it useful to divide defense programs into “investment” and “support”

categories as a means of determining how much funding is devoted to the

procurement of defense capital goods, such as weapons and facilities, and

how much goes for programs to operate and maintain defense forces and

equipment. Funding for each of these categories contributes to military

capability in different ways.

Investment funding builds a stock of equipment and facilities that lasts for

many years. The investment category encompasses the procurement;

research, development, test, and evaluation; and military construction

appropriation titles.

Support funding provides the manpower and other resources to operate

and maintain the equipment. The effect of support funding on military

capability is more temporary because training and maintenance must be

done regularly to maintain armed forces at the required level of

effectiveness. The support category encompasses the military personnel,

operation and maintenance, and family housing appropriation titles.

Page 25 GAO/NSIAD-95-138BR Peace Operations
Briefing Section III 

How DOD’s Budget Supports Peace

Operations

GAO How Investment Funding Supports 

Peace Operations

Buy the equipment used in peace operations.

Develop new equipment for future use.

Build the facilities that will support the people and 

equipment when not deployed.

Page 26 GAO/NSIAD-95-138BR Peace Operations
Briefing Section III 

How DOD’s Budget Supports Peace

Operations

Investment funding provides military personnel with the equipment they

use in peace operations. The procurement title provides DOD with the

funds to buy the weapons and other hardware needed for peace

operations. U.S. military personnel have used a wide array of weapons and

equipment in peace operations. Both the Army and the Marine Corps have

used helicopters, tanks, armed personnel carriers, trucks, and other

vehicles. The Air Force has used a wide array of aircraft, including the E-3

Airborne Warning and Control System for surveillance and command and

control, F-15Es for enforcement of no-fly zones, and C-130s for

transportation and airdrops of humanitarian aid. The Navy has used a wide

array of ships and aircraft, including carrier battle groups and other major

ships, in the enforcement of no-fly zones and sanctions.

The research, development, testing, and evaluation title provides DOD with

funds to maintain state-of-the-art technology for its weapon systems, ships

and aircraft, communication and intelligence equipment and systems,

vehicles, and facilities. While it takes many years to develop new weapons,

many of the aircraft, tanks, and other equipment cited above were

developed with funding from this title. Recent efforts to develop less-lethal

equipment for use in peace operations is also being funded from this title.

The military construction title provides funds for the construction of

facilities related to all aspects of the lives of military personnel—living,

working, training, and recreation. This title also provides troops with

facilities while they are involved in peace operations.

DOD does not for the most part depreciate its equipment, nor does it have a

system of applying costs for research and development or any other

investment item to any specific operation. Therefore, it would be

extremely difficult to estimate with any reasonable assurance what

portion of the cost of investment items should be applied to peace

operations.

Page 27 GAO/NSIAD-95-138BR Peace Operations
Briefing Section III 

How DOD’s Budget Supports Peace

Operations

GAO How Support Funds Facilitate 

Peace Operations

Pays military personnel.

Train, sustain, and maintain forces.

Provides for maintenance and leases of housing for 

military personnel and their families.

Page 28 GAO/NSIAD-95-138BR Peace Operations
Briefing Section III 

How DOD’s Budget Supports Peace

Operations

Support funding pays military personnel and provides them with the

capability to operate and maintain the equipment and facilities needed to

participate in peace operations. The military personnel title funds the base

pay and allowances of military personnel. Whether at their home station in

the United States or abroad or deployed from their home station, military

personnel draw the same base pay. When deployed to peace operations,

they sometimes become eligible for special pay, such as imminent danger

pay, which is part of the incremental costs of these operations.

The operation and maintenance title provides the funds to maintain

normal operations, including training military troops to accomplish their

missions. This training provides the military personnel that deploy to

peace operations with the skills necessary to execute their part of the

operations. Among other things, such as sustaining military personnel at

their home stations, this title provides the funds to maintain weapons and

other equipment so that they are ready to be used in peace operations.

The family housing title provides DOD funds to, among other things,

operate, maintain, improve, and replace military family housing. This title

supports the involvement of DOD’s troops in peace operations by providing

housing for their families and dependents.

Except for base military pay, which can be estimated with some precision,

many assumptions would have to be made in order to allocate support

costs to peace operations. For example, while it might be possible to

allocate a portion of DOD’s military training costs to peace

operations—using a combination of DOD’s total training costs compared to

that portion of its personnel that were involved in peace operations—DOD

does not have a system to accumulate and distribute such costs. Other

parts of the support costs, such as the maintenance of facilities, would be

even more difficult to approximate.

Page 29 GAO/NSIAD-95-138BR Peace Operations
Appendix I 

U.N. Peacekeeping Assessments

GAO Estimated U.S. Share of Special U.N. 

Peacekeeping Assessments 

Dollars in millions

Location of U.N. mission 

U.S. assessed share

of U.N. mission

Golan Heights $ 10.3

Lebanon 44.8

Iraq/Kuwait 6.0

Angola 69.2

Western Sahara 27.8

El Salvador 5.6

Yugoslavia 506.0

Somalia 150.0

Mozambique 15.1

Cyprus 6.7

Haiti 56.1

Georgia 8.4

Rwanda 72.6

Tajikistan 1.5

Liberia __12.0

Total $992.1

a

aThe United States will contribute an additional $9.9 million for two peacekeeping

operations—Israel and India/Pakistan—that are financed through the regular U.N. budget.

Page 30 GAO/NSIAD-95-138BR Peace Operations
Appendix II 

Major Contributors to This Report

National Security and

International Affairs

Division, Washington,

D.C.

Steven H. Sternlieb, Assistant Director

Frances W. Scott, Evaluator

Lisa M. Quinn, Evaluator

Norfolk Field Office Lindsay B. Harwood, Evaluator-in-Charge

Carleen C. Bennett, Evaluator

J. Larry Peacock, Evaluator

New York Field Office Gerda M. Lloyd, Site Senior

(701051) Page 31 GAO/NSIAD-95-138BR Peace Operations
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