United States General Accounting Office

GAO National Security and International

Affairs Division

March 1995 International Affairs

Issue Area Plan

Fiscal Years 1995-97

GAO/IAP-95-5

Foreword

The International Affairs issue area is one of 35 issue areas for which GAO

periodically develops multiyear strategic plans. Relying heavily on

consultation with congressional committees, as well as with industry,

academia, and agency officials, and other experts, GAO develops issue area

plans to ensure that our resources are focused on the most important

concerns of the Congress. For each issue area, GAO’s strategic plan

describes the significance of the issues, our objectives, and the focus of

our work. GAO’s goal is to serve as a source of timely, accurate information

and unbiased analysis for decisionmakers in the Congress and executive

agencies. Our work results in such products as reports, briefings, and

testimonies.

The costs and effectiveness of foreign affairs activities are being closely

scrutinized. We will assess how the government is adapting to post-Cold

War budget realities, how functions and activities are meeting essential

U.S. interests, and how these functions and activities can be managed at

the least cost to the taxpayer. GAO’s work in the International Affairs issue

area focuses on

• the structure, functions, and budgets of the foreign affairs agencies;

• U.S. policies and programs designed to assist and influence the

governments and people of other countries;

• U.S. arms control and nonproliferation strategies and programs designed

to address the threats posed by the spread of dangerous weapons; and

• U.S. policies and programs in the former Soviet Union and Central Europe.

The International Affairs issue area covers the Department of State, the

U.S. Agency for International Development, the U.S. Information Agency,

the Arms Control and Disarmament Agency, and related programs; U.S.

participation in international organizations; and certain international

programs of the Department of Defense.

In the pages that follow, we describe our key ongoing and planned work

on these issues.

Page 1 GAO/IAP-95-5
Foreword

Because events may significantly affect even the best of plans, our

planning process allows for updating the plan to respond quickly to

emerging issues. If you have any questions or suggestions about this plan,

please call me at (202) 512-4128.

Joseph E. Kelley

Director-in-Charge

International Affairs Issues

Page 2 GAO/IAP-95-5
Content

Foreword 1

Table I: Key Issues 4

Table II: Major

Ongoing and Planned

Work

6

Table III: GAO

Contacts

7

Page 3 GAO/IAP-95-5
Table I: Key Issues

Issue Significance

Foreign affairs functions and budgets: Do

agencies’ structures/functions reflect fiscal

realities and are resources well managed?

Broad-based reform, restructuring, better management, and elimination of non essential

activities are needed to meet evolving U.S. overseas interests in an era of budget

reductions. There is growing momentum for major downsizing and restructuring of the

foreign affairs apparatus and reduction in the $21-billion international affairs budget. 

Cost/impact of influence and assistance:

Are U.S. policies/programs affordable and

are they achieving essential objectives?

The Cold War rationale for foreign aid and other tools of influence is no longer valid.

Faced with budget reductions and skepticism on the need for, and impact of, overseas

expenditures, the government needs to ensure that its strategies and tools effectively

serve U.S. interests at acceptable costs. The administration plans to spend about $13

billion in 1996 for bilateral and multilateral assistance.

Arms control and nonproliferation: Are

U.S. strategies addressing threats posed by

the spread of dangerous weapons?

Achieving the objectives of arms control and stemming the spread of dangerous

weapons and technology remain cornerstones of U.S. national security policy, given the

collapse of the Soviet bloc and ongoing concerns about potential troublespots such as

Iran and North Korea. Results of U.S. strategies and programs, costing over $2 billion

each year, will have an immeasureable impact on future defense costs and U.S.

security.

Former Soviet Union and Central Europe:

Are U.S. policies and programs achieving the

objectives?

The United States has a direct security stake in Russian and other former Soviet bloc

reform efforts. It is important that the funding, credits, and other resources, amounting to

about $15 billion over several years, are directed and spent wisely.

Page 4 GAO/IAP-95-5
Table I: Key Issues

Objectives Focus of work

—Determine the compatability of foreign affairs agencies’ functions

and roles with priorities, budget constraints, and capabilities.

—Identify ways to improve management of agency resources and cut

costs.

—Assess progress of and savings from reform efforts at foreign

affairs agencies and the advantages, disadvantages, and cost

implications of proposals to reorganize the foreign affairs apparatus.

•Foreign affairs functions with probable duplication or cost

recovery options.

•Opportunities to cut costs with tighter

management/reassessment of purpose. 

•Proposals to reorganize the foreign affairs apparatus and

reform efforts announced by the Vice-President.

•Resource management and control for areas of risk and

material weakness.

—Determine whether tools/programs/ agreements serve current and

essential political, economic, and security interests.

Determine cost, impact, implementation status, and impediments to

success of key initiatives.

•Large, highly visible, and/or controversial country programs or

initiatives.

•U.S. participation in peacekeeping and multilateral institutions.

—Assess progress and feasibility of achieving U.S. goals and

objectives and identify the obstacles. 

—Identify ways to improve organization and management of U.S.

programs and activities.

•Nonproliferation goals and programs in the former Soviet

Union, especially the cooperative threat reduction programs. 

•Management and efficiency of key initiatives, agreements, and

treaties.

•International safeguards over weapons grade materials.

—Determine how well the United States has defined its objectives

and devised a consistent strategy. 

—Assess results of U.S. programs in helping the region achieve

economic restructuring and democracy and identify obstacles that

impede progress.

•Appropriateness and success of strategy in attaining U.S.

goals.

•Impact, cost, status, and impediments to U.S. assistance.

Page 5 GAO/IAP-95-5
Table II: Major Ongoing and Planned Work

Issue Major jobs

Foreign affairs functions and budgets •Proposals to consolidate the foreign affairs agenciesa

•Implementation of the Vice President’s reform plans at the foreign affairs agencies

•How best to manage the delivery of foreign aid

•Budget scrub of the international affairs (function 150) account

•Disposal of State’s excess overseas real propertya

•Cutting/recovering costs in consular programsa

•State’s role in the competitiveness arena

•Need and affordability of diplomatic allowances/benefits

•Affordability of overseas security requirements

•How best to equitably share embassy costs

•Allocating resources to foreign policy goals

Cost/impact of influence and assistance •Stability and recovery in Haitia

•Impact of democracy promotion overseasa

•Reforms at the World Banka

•Peace operations effectivenessa

•Management/impact of international antidrug programsa

•Cost of peace and U.S committments to the Middle East and Persian Gulf

•NATO countries’ support for new missions and costs of expanding the alliance

•Cost and status of U.S. antiterrorism initiatives

Arms control and nonproliferationb •International accountability over plutonium materials

•Management and cost of the Department of Defense’s

 On-Site Inspection Agency

•Impact of cooperative threat reduction programsa

•Progress in implementing nuclear agreements with North Korea

•Impact of chemical weapons destruction programs in the former Soviet Uniona

Former Soviet Union and Central Europeb •Crime assistance package

•Progress in privatization 

•Establishing a timetable for ending U.S. assistance

•Management of exchange activities

•Results from provision of enterprise funds

aOngoing assignments

bWork in the former Soviet Union is part of an integrated GAO-wide plan that will be implemented

by several groups of the National Security and International Affairs; General Government; and

Resources, Community, and Economic Development Divisions.

Page 6 GAO/IAP-95-5
Table III: GAO Contacts 

Director-In-Charge Joseph E. Kelley (202) 512-4128

Director Harold J. Johnson, Jr.

Associate Director Benjamin F. Nelson

Assistant Directors John Brummet

Diana M. Glod

Ronald A. Kushner

David R. Martin

Tetsuo Miyabara

Andres C. Ramirez, Jr.

Leroy W. Richardson

Charles A. Schuler

F. James Shafer, Jr.

Lawrence L. Suda

Louis H. Zanardi

Page 7 GAO/IAP-95-5
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