U.S. GOVERNMENT PUBLISHING OFFICE

32–307PDF WASHINGTON : 2018

EUROPE AND EURASIA: ENSURING RESOURCES

MATCH OBJECTIVES

HEARING

BEFORE THE

SUBCOMMITTEE ON EUROPE, EURASIA, AND 

EMERGING THREATS

OF THE

COMMITTEE ON FOREIGN AFFAIRS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED FIFTEENTH CONGRESS

SECOND SESSION

SEPTEMBER 27, 2018

Serial No. 115–165

Printed for the use of the Committee on Foreign Affairs

(

Available: http://www.foreignaffairs.house.gov/, http://docs.house.gov,

or http://www.gpo.gov/fdsys/

(II)

COMMITTEE ON FOREIGN AFFAIRS 

EDWARD R. ROYCE, California, Chairman 

CHRISTOPHER H. SMITH, New Jersey 

ILEANA ROS-LEHTINEN, Florida 

DANA ROHRABACHER, California 

STEVE CHABOT, Ohio 

JOE WILSON, South Carolina 

MICHAEL T. MCCAUL, Texas 

TED POE, Texas 

DARRELL E. ISSA, California 

TOM MARINO, Pennsylvania 

MO BROOKS, Alabama 

PAUL COOK, California 

SCOTT PERRY, Pennsylvania 

MARK MEADOWS, North Carolina 

TED S. YOHO, Florida 

ADAM KINZINGER, Illinois 

LEE M. ZELDIN, New York 

DANIEL M. DONOVAN, JR., New York 

F. JAMES SENSENBRENNER, JR., 

Wisconsin 

ANN WAGNER, Missouri 

BRIAN J. MAST, Florida 

FRANCIS ROONEY, Florida 

BRIAN K. FITZPATRICK, Pennsylvania 

THOMAS A. GARRETT, JR., Virginia 

JOHN R. CURTIS, Utah 

VACANT 

ELIOT L. ENGEL, New York 

BRAD SHERMAN, California 

GREGORY W. MEEKS, New York 

ALBIO SIRES, New Jersey 

GERALD E. CONNOLLY, Virginia 

THEODORE E. DEUTCH, Florida 

KAREN BASS, California 

WILLIAM R. KEATING, Massachusetts 

DAVID N. CICILLINE, Rhode Island 

AMI BERA, California 

LOIS FRANKEL, Florida 

TULSI GABBARD, Hawaii 

JOAQUIN CASTRO, Texas 

ROBIN L. KELLY, Illinois 

BRENDAN F. BOYLE, Pennsylvania 

DINA TITUS, Nevada 

NORMA J. TORRES, California 

BRADLEY SCOTT SCHNEIDER, Illinois 

THOMAS R. SUOZZI, New York 

ADRIANO ESPAILLAT, New York 

TED LIEU, California

AMY PORTER, Chief of Staff THOMAS SHEEHY, Staff Director

JASON STEINBAUM, Democratic Staff Director 

SUBCOMMITTEE ON EUROPE, EURASIA, AND EMERGING THREATS

DANA ROHRABACHER, California, Chairman 

JOE WILSON, South Carolina 

TED POE, Texas 

TOM MARINO, Pennsylvania 

F. JAMES SENSENBRENNER, JR., 

Wisconsin 

FRANCIS ROONEY, Florida 

BRIAN K. FITZPATRICK, Pennsylvania 

JOHN R. CURTIS, Utah 

GREGORY W. MEEKS, New York 

BRAD SHERMAN, California 

ALBIO SIRES, New Jersey 

WILLIAM R. KEATING, Massachusetts 

DAVID N. CICILLINE, Rhode Island 

ROBIN L. KELLY, Illinois 

(III)

C O N T E N T S 

Page

WITNESSES 

Ms. Janine Wynne, Acting Coordinator, Office of the Coordinator of U.S. 

Assistance to Europe and Eurasia, U.S. Department of State ......................... 5

Ms. Emilia Puma, Acting Deputy Assistant Secretary, Bureau of South and 

Central Asian Affairs, U.S. Department of State .............................................. 12

The Honorable Brock Bierman, Assistant Administrator, Bureau for Europe 

and Eurasia, U.S. Agency for International Development ............................... 18

Ms. Ann Marie Yastishock, Deputy Assistant Administrator, Bureau for Asia, 

U.S. Agency for International Development ...................................................... 26

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING 

Ms. Janine Wynne: Prepared statement ................................................................ 8

Ms. Emilia Puma: Prepared statement .................................................................. 14

The Honorable Brock Bierman: Prepared statement ........................................... 21

Ms. Ann Marie Yastishock: Prepared statement .................................................. 28

APPENDIX 

Hearing notice .......................................................................................................... 48

Hearing minutes ...................................................................................................... 49

(1)

EUROPE AND EURASIA: ENSURING 

RESOURCES MATCH OBJECTIVES 

THURSDAY, SEPTEMBER 27, 2018

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON EUROPE, EURASIA, AND EMERGING THREATS,

COMMITTEE ON FOREIGN AFFAIRS,

Washington, DC. 

The subcommittee met, pursuant to notice, at 2 o’clock p.m., in 

room 2200 Rayburn House Office Building, Hon. Dana Rohrabacher 

(chairman of the subcommittee) presiding. 

Mr. ROHRABACHER. All right. 

For decades it’s been the policy of the United States to see the 

countries of Europe and Eurasia increase their liberty. That’s been 

our goal—to find security from hostile foreign coercion and to grow 

into their economic prosperity. 

To achieve this, we have deployed men and women in uniform. 

We have deployed our tax dollars abroad into these areas for decades and we were resolved that a more secure and peaceful Europe 

would be increased and that they would increase our own security 

here at home in the United States. 

This afternoon’s hearing is to examine the path that has been 

laid out by President Trump, Secretary of State Pompeo, and Administrator Green for U.S. policy toward Europe, Eurasia, and Central Asia—what are our aims and goals and what are the aims and 

goals that we have as a country in that region, that is, and what 

advantage we can leverage and what part of the burden from what 

we do in that area can be borne by our allies themselves and how 

are the resources our Government has been putting in to that region—how does it match up to the achievements that we have been 

having in that region. 

Earlier this year when the administration unveiled the first fiscal year 2019 budget proposal, the international affairs portion 

amounted to, roughly, $42 billion. That was a sizeable top line decrease and contained major reductions for assistance programs and 

activities inside the region that this subcommittee oversees. 

Now, before we get into this any further, I know some of my colleagues will point out that the international affairs portion of the 

budget is relatively small, implying that waste or unneeded spending must also be small if we have a small budget. 

Well, I totally reject that notion. Our Government and, hence, 

the American people are over $1 trillion—that’s $21 trillion—in 

debt. Every dollar that we vote to spend places even a heavier burVerDate 0ct 09 2002 14:26 Oct 31, 2018 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 Z:\WORK\_EEET\092718\32307 SHIRL
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den on either the taxpayers today or our children, who will eventually pay the bill. 

We need to ensure that they are getting every ounce of value 

that is in any budget that we propose. 

From our witnesses today I look forward to learning about the 

programming in their areas of responsibility and how much of 

those efforts cost and how much they cost, and how they are furthering the President’s agenda and his stated vision to build a stabler partner in the states there and the region and to counter radical Islamic terrorism in Europe and Eurasia. 

I want to thank our witnesses for appearing today and all members will have 5 days to submit material for the record. 

And we will be introducing the witnesses in a moment and what 

I am going to do is ask you to keep your testimony down to about 

5 minutes. Anything else you want to put in the record will be in 

the record, and then we will go to one question and answer period 

once we are all done with your testimony. 

So I will now yield to my ranking member, Mr. Meeks, for his 

opening remarks. After that, I will introduce our witnesses and ask 

them, as I say, to summarize their testimony. 

Mr. SHERMAN. Are there other members of the subcommittee 

making——

Mr. ROHRABACHER. If there is a request, the answer is yes. 

Mr. SHERMAN. Okay. 

Mr. ROHRABACHER. Okay. Okay. Got it. If we could—Mr. Meeks, 

being the ranking member, go ahead—5 minutes. If I could ask my 

other colleagues to make it about 2 minutes. Is that okay? Okay. 

Thank you very much. 

Mr. Meeks. 

Mr. MEEKS. Thank you, Mr. Chairman, for calling this hearing 

because the U.S.-Europe-Eurasia relationship remains an important part of global stability in light of efforts by Russia to interfere 

in our democracies. 

The Trump administration has proposed a total fiscal year 2019 

budget request for Europe and Eurasia that is at $424.2 million—

a decline of 63 percent from actual funding for 2017. The funding 

at that time was $1.1 billion. 

I am concerned about this and want to get an understanding 

from our witnesses today about how this aligns and how it impacts 

U.S. interests. 

The proposed budget calls into question whether or not the State 

Department will be adequately resourced in Europe and Central 

Asia at a time when there is an acute need to support our allies 

and advance U.S. priorities. 

The Trump administration’s fiscal year 2019 budget leads us to 

question the ability of USAID and the State Department to execute 

their missions in the face of the Russia malign influence and the 

draconian cuts proposed by the President of the United States. 

Enshrined both within—within both the USAID and the State 

Department’s mission statements is a commitment to promote 

democratic values abroad, advance a free, peaceful, and prosperous 

world, foster conditions for stability and progress for the benefit of 

the American people and people everywhere. 

3

And yet, we hear that some USAID missions in Europe are closing completely and resources are being diverted away from the 

USAID and the State Department. 

Instead, those resources are headed one place—to the Pentagon. 

Not back to the American people, not going to make a difference 

with reference to the debt, but going to the Pentagon. 

So, in short—because my time is short—and I won’t quote all of 

the decorated American generals who time and time again say a 

weakened diplomatic corps directly undermines our national security. 

I can’t understand how the American people are served by a diminished diplomatic community. What I see here plainly by examining this budget is a mishmash of priorities and lack of strategy 

to support our interests and needs. 

Today, some leaders in Europe are leaning toward 

authoritarianism and are not safeguarding the democratic principles the EU and NATO were founded upon. 

We see tactics like cracking down on free speech, attacking the 

media, shutting down opposition and weakening of judiciaries. 

In Poland, we see the backsliding of strong democratic institutions with actions that undermine the pillars of democracy. I’ve 

spoken out, for example, about the termination of judges based on 

their failure to agree with the ruling party. 

We know of the disciplining of judges for not ruling against the 

ruling party, independent media censored and placed in the hands 

of state affiliates, raids of NGOs and terminated funding based on 

whether the government disapproves of the community served by 

the NGO. 

With regards to Hungary, on September 12th the European 

Union—European Parliament voted to censor Hungary and lawmakers denounced Viktor Orban’s government as a systemic threat 

to the rule of law. 

This underscores that we must work with our allies to bolster, 

not undercut, the very values that provide the basis for the United 

States’ partnerships with local governments and their institutions. 

We have seen the Kremlin’s aggressive efforts to destabilize 

semi-consolidated democracies and transitional governments like 

Ukraine, Georgia, Montenegro, Serbia, Bulgaria, and Hungary. 

Consolidated democracies are not isolated from the same Kremlin aggressions. Baltic and Nordic states, the Netherlands, United 

Kingdom, France, Germany, Spain, Italy are all contending with 

Russia’s anti-democratic efforts. 

I do not understand how the administration’s proposed budget 

addresses our shared security objectives and prosperity. 

And I hope to hear from our witnesses today how this budget addresses our challenges and prepares us for our challenges of tomorrow. 

I’ll close with just that I just had lunch with several former 

prime ministers in the Eastern Europe. All very concerned—all allies, strong allies of ours—all who, you know, even paid their 2 percent to NATO—seriously concerned about what’s taking place in regards to this budget and so I’d love to hear from you in that regard. 

And I yield back. 

Mr. ROHRABACHER. Mr. Sherman. 

4

Mr. SHERMAN. I want to associate myself with Mr. Meeks’ comments about how we need to be spending an adequate amount and 

more than is put forward in the President’s budget on foreign aid 

in general and the region we are here to discuss. 

One of the many reasons—advantages of spending money on foreign aid is we can then go to European countries and push them 

to do more, pointing out that the United States bears the great 

burden of world national security—that when in the region we are 

here to talk about there was mass atrocities in Kosovo and Bosnia, 

the United States did a—the lion’s share of the national security 

and military effort to safe people from ethnic cleansing and, some 

would say, genocide. 

And so I’ll want to know from our witnesses what is being done 

by the State Department to push Europe to do more. This is especially clear because we are asking Europe to do more in Europe. 

So the right comparison is not between what we do in Europe 

and what Europe does in Europe, but what we do in Europe versus 

what we do in the Americas and what Europe does in Europe, and 

I don’t think that Europe does very much to deal with the great 

problems of Guatemala, El Salvador, Honduras, and the Caribbean. 

I’ll also be asking our witnesses about the Caucuses, particularly 

the newly renamed Republic of Artsakh, what efforts you can make 

to get Treasury to focus on a tax treaty for Armenia, and while it’s 

outside the purview of this subcommittee I will sneak in a question 

for Ms. Puma about Sindh and Pakistan because I know that that 

is in your area, and my colleagues will forgive me for asking a 

question on that. 

I yield back. 

Mr. ROHRABACHER. Ms. Kelly. 

Ms. KELLY. Thank you, Mr. Chairman, for holding this hearing 

today on foreign assistance budget requests for Europe, Eurasia, 

and Central Asia. 

I was disappointed to see the President’s request of foreign assistance for this region represent a 28 percent decrease from the 

fiscal year 2018 funding levels. 

Countries like Ukraine and Georgia, which have experienced direct conflict with Russia are subject to substantial cuts. Georgia, in 

particular, will be subject to a 25 percent cut in funding. 

These cuts are not a return to average. They would fall far below 

the average of the past 10 years. 

Many countries in Europe and Central Asia are at pivotal moments to either open their governments to democracy or retreat 

into autocratic tendencies. 

The United States should not step back from engaging and pushing countries to adopt open markets and good government practices. Now is the time to invest in the long-term benefits of a stable 

and prosperous Europe and Central Asia. 

Thank you to the witnesses today on their work in Europe and 

Central Asia, and I want to thank you all for your hard work that 

you bring—that you bring positive change to the region. 

I yield back. 

Mr. ROHRABACHER. And thank you to our members who have 

shown up. This is a discussion and not just testimony and not just 

5

back and forth. We are going to have—and we appreciate we have 

some great witnesses to help us lead this discussion. 

Brock Bierman is the Assistant Administrator for USAID’s Bureau for Europe and Eurasia. Before coming to his current position, 

Mr. Bierman served in multiple capacities with FEMA and USAID 

and the Department of Interior and in the private sector as well. 

And Janine Wynne is the Acting Coordinator for the Office of Assistance Coordination for Europe—there you are, okay—for Europe, 

Eurasia, and Central Asia. Ms. Wynne is also the Director of the 

Office of Policy and Global Issues inside the Bureau of European 

and Eurasian Affairs. She is a senior civil servant with a long track 

record within the executive branch. 

And then we have Ann Marie Yastishock—I mispronounce it 

every time—there you go, but that’s okay. My name is Rohrabacher 

and everybody mispronounces that. So and she’s a career member 

of the senior Foreign Service and currently serves as Deputy Assistant Administrator for Asia within USAID. And prior to joining 

the Asia Bureau, she served as the Deputy Mission Director of the 

regional USAID office covering Ukraine, Moldova, Belarus, and Cyprus. 

And Emilia Puma—there you are—is the Acting Deputy Assistant Secretary of State for the Bureau of South and Central Asia. 

She is also a career member of the senior Foreign Policy Service. 

Since joining the State Department in 1991 she has held a wide 

range of posts including assignments in Spain, Kosovo, and Italy, 

among others. 

So we have some real pros with us today and I want to thank 

you for sharing your experience with us and your judgment, and 

if you could do that, as I say, for 5 minutes, that’ll be helpful and 

then we will have a discussion—a dialogue. 

Ms. Wynne, you may proceed. 

STATEMENT OF MS. JANINE WYNNE, ACTING COORDINATOR, 

OFFICE OF THE COORDINATOR OF U.S. ASSISTANCE TO EUROPE AND EURASIA, U.S. DEPARTMENT OF STATE 

Ms. WYNNE. Thank you, Chairman Rohrabacher, Ranking Member Meeks, and members of the subcommittee for the opportunity 

to testify today on the President’s fiscal year 2019 budget request 

for Europe and Eurasia. 

I deeply appreciate your interest, commitment, and strong bipartisan support for our region and the work we are doing to protect 

our national interests. I would ask that you please submit my written testimony for the record. 

As reflected in the President’s national security strategy, the 

principal goal of U.S. engagement with Europe is to preserve the 

West as a community of nations united by shared sacrifice and a 

commitment to common defense, democratic values, fair trade, and 

shared interests. 

While making America more prosperous and secure is work that 

starts at home, preserving the West cannot happen without our allies and partners in Europe. A strong and free Europe is vital to 

American interests. 

The President’s fiscal year 2019 foreign assistance request of 

$424.2 million for Europe and Eurasia supports the President’s priVerDate 0ct 09 2002 14:26 Oct 31, 2018 Jkt 000000 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 Z:\WORK\_EEET\092718\32307 SHIRL
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ority of enhancing the safety and security of the American people, 

which includes advancing our vision of a Europe that is strong and 

free. 

To this end, we will pursue six main goals. 

First, we will strive to strengthen the Western Alliance and compete effectively for positive influence by working with our NATO allies to ensure that the alliance is ready and willing to defend itself. 

Second, we will strengthen and balance the trans-Atlantic trade 

and investment relationship between the United States and Europe. 

The President’s fiscal year 2019 foreign assistance request supports this goal, with over $117 million in economic growth assistance. With these funds, we will establish a level playing field that 

allows American companies to compete and create jobs and 

strengthen the energy security of our European allies and partners. 

Third, we must secure the eastern frontier of Europe where Russia and others increasingly seek to sow and exploit division, destabilize Europe and weaken Western cohesion. 

Our foreign assistance request reflects these priorities, with over 

$252 million going toward supporting the front line states of 

Ukraine, Georgia, and Moldova, where Russia’s aggression and 

pressure are the greatest, and nearly $78 million to support stability in the Western Balkans and advance their Western integration. 

Ukraine is engaged in an internal struggle to implement a broad 

range of economic, anti-corruption, judicial, and governance reforms, even as it faces continued Russian aggression and pressure. 

Our fiscal year 2019 foreign assistance request of $204 million 

for Ukraine is a tangible sign of our steadfast resolve to stand with 

the Ukrainians and their democratic aspirations. 

While the government has put in place many considerable reforms over the last 4 years, it still has much to do, including implementing anti-corruption laws, adjusting gas tariffs, and reducing 

budget deficits in line with IMF requirements, and ensuring upcoming elections are free and fair. 

We remain committed to Ukraine’s territorial integrity, and since 

2014, we have provided over $1 billion in training and equipment 

to Ukraine to help it defend its sovereignty and territorial integrity, to better monitor and secure its borders, and to deploy its 

forces more safely and effectively. 

Our fiscal year 2019 request continues to support these aims including $20 million in foreign military financing assistance. 

In Georgia, we have a steadfast partner whose efforts to reform 

are one of the good news stories in a tough neighborhood. Our fiscal year 2019 assistance request of just over $31 million will continue to help Georgia counter Russian aggression by diversifying 

its economy and fostering a business environment that is grounded 

in rule of law and friendly to American businesses. 

Our continuing support to our Western Balkans partners 

prioritizes advancing the normalization of Kosovo-Serbia relations 

and their integration into the Western community of nations. 

We will continue to facilitate political reform and reconciliation 

in Bosnia and Herzegovina and work with Greece and Macedonia 

7

to implement the Prespa agreement, resolving the name dispute, 

and so unblock the path to Macedonia’s euro-Atlantic integration. 

And we will keep working with partners to enhance the region’s 

capabilities, to fight organized crime, corruption, and terrorism. 

Finally, securing Europe’s eastern frontier also means supporting 

the democratic aspirations of the people of Armenia including preserving their freedom to choose further integration with the West. 

Our fourth strategic goal is to work with allies, the EU, and partners to stabilize the southern frontier where recent migration flows 

have sent ripples through the heart of Europe, even as Russian 

competition in the eastern Med is increasing. 

Fifth, we will uphold Western democratic principles and institutions, which are key to our security and prosperity. In line with 

this goal, our fiscal year 2019 foreign assistance requests includes 

over $150 million to support democracy and governance reforms in 

the region. 

Finally, our success in achieving all of these goals will depend 

heavily on maintaining the confidence of the American people who 

have entrusted the Department of State and USAID with their taxpayer dollars in support of our national security objectives. 

Thank you. 

[The prepared statement of Ms. Wynne follows:]

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Written Statement 

Janine Wynne 

Acting Coordinator 

Office of the Coordinator of U.S. Assistance to Europe and Eurasia 

U.S. Department of State 

"Europe and Eurasia: Ensuring Resources Match Objectives" 

Hearing before the 

House Foreign Affairs Committee 

Subcommittee on Europe, Eurasia and Emerging Threats 

September 27, 2018 

Chairman Rohrabacher, Ranking Member Meeks, and members of the Subcommittee, thank you for the 

opportunity to testify today on the President's FY 2019 budget request for Europe and Eurasia. I deeply 

appreciate your interest, commitment, and strong bipartisan support for our region, and the work we are 

doing to protect our national interests. 

As reflected in the President's National Security Strategy, the principal goal of U.S. engagement with 

Europe is to preserve the West as a community of nations united by shared sacrifice and a commitment 

to common defense, democratic values, fair trade, and shared interests. America and Europe are the 

West and the heart of the free world. While making America more prosperous and secure is work that 

starts at home, preserving the West cannot happen without our Allies and partners in Europe. With 

more than $5.5 trillion in annual commerce, Europe is the central pillar of our international alliances, 

and by far our largest economic partner. There is no major foreign policy challenge in which America 

and Europe can hope to succeed without each other. A strong and free Europe is vital to American 

interests. 

Our strategy in Europe is based on the recognition that Europe is a theater of geopolitical competition, 

and that the United States and Europe must confront our shared threats together. The President's FY 

2019 foreign assistance request of $424,2 million for Europe and Eurasia supports the President's 

priority of enhancing the safety and security of the American people, which includes advancing our 

vision of a Europe that is strong and free. To this end, we will marshal both our foreign assistance 

resources and our diplomatic engagement with the sovereign nations of Europe to make prObJTess on six 

main goals. 

First, we will strive to stren!,1hen the Western alliance and compete effectively for positive influence by 

working with our NATO Allies to ensure that the alliance is ready and willing to defend itself. This 

means NATO Allies meeting their defense spending commitments. It means strengthening our 

collective capacity to counter the range of threats, including conventional, nuclear, hybrid, and cyber. It 

means ensuring the lasting defeat ofTSTS and other transnational terrorist organizations. Finally, it 

means working with our Allies and partners to apply decisive pressure to convince the DPRK and Iran 

to abandon their current threatening and destabilizing paths. 
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Second, we will strengthen and balance the transatlantic trade and investment relationship between the 

United States and Europe. Competing successfully in this new era of Great Power Competition depends 

on keeping our economy strong and securing our Allies' and partners' energy sources. The President's 

FY 2019 foreit,m assistance request supports this goal with over $117 million in economic growth 

assistance. We must work with our European partners to eliminate inequities and imbalances in our 

trade relations, and use both our diplomatic tools and foreign assistance to establish a level playing field 

that allows American companies to compete and create jobs, spurring growth on both sides of the 

Atlantic. Energy security for our European Allies and partners is also vital. To that end, we will support 

projects that strengthen European energy security, such as the Southern Gas Corridor, and oppose those 

like Nord Stream 2, or the second line of TurkStream, that weaken it. We will promote fuel 

diversification, new delivery routes, and alternative sources. We will find ways to reduce energy 

demand and encourage a transparent regulatory environment in Europe that promotes investment. 

Taking these steps is vital to making our Allies and partners less susceptible to pressure from outside 

powers that on! y seek their own benefit, rather than furthering mutual interests and values. 

Third, we must secure the Eastern frontier of Europe where Russia and others increasingly seek to sow 

and exploit division, destabilize Europe, and weaken Western cohesion. From the Caucasus and 

Ukraine through the Balkans and up through the Danube Basin to the Baltics, Europe's Eastern frontier 

is a renewed geopolitical focus for Russia and a new destination for strategically motivated investment 

from China. To defend this frontier we must build up the means of self-defense for nations most 

directly affected, including Ukraine, Georgia, and Moldova, while also helping our increasingly 

vulnerable partners in the Western Balkans put to rest regional and internal conflicts and further 

integrate with the West. Our foreign assistance request reflects these priorities, with over $252 

million going towards supporting the frontline states of Ukraine, Georgia and Moldova, where 

Russia's aggression and pressure are the greatest, and nearly $78 million to support stability in 

the Western Balkans, and advance their Western integration. 

Through our diplomacy and assistance to these states, we are helping them become more resilient in the 

face of malign activities. Our efforts include fortifying their political systems to foster fair and 

transparent competition among the full range of democratic parties, countering disinformation and 

supporting independent media, diversifying energy grids, improving the readiness of their military and 

cyber defenses, and encouraging regional coordination to confront shared challenges. Similarly, through 

our public engagement, we provide viable alternatives to Russian and Chinese malign activities. This 

includes strengthening the bonds oftiiendship and common values with the peoples of Europe and 

Eurasia, including those generations for whom the memory of 1989 and NATO enlargement is distant, 

or nonexistent. 

Ukraine is engaged in an internal struggle to implement a broad range of economic, anti -corruption, 

judicia], and governance reforms, even as it faces continued Russian aggression and pressure. Our FY 

2019 foreign assistance request of $204 million for Ukraine is a tangible sign of our steadfast resolve to 

stand with Ukrainians and their democratic aspirations. While the government has put in place many 

considerable reforms over the last four years, it has much still to do. Ukraine's passage of laws on an 

anti-corruption court and foundational Law on National Security earlier this year were steps in the right 

direction, but implementation will be key. We are hopeful there will soon be an agreement with the TMF 

to adjust gas tariffs and budget deficits, thereby unlocking the next round ofiMF funding. Similarly, 

free and fair 2019 elections in Ukraine are a litmus test of Ukrainian officials' commitment to the 
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people's demand for democratic reform, rule of law, and accountability. Our assistance will support 

free, fair, and inclusive election processes, enhance public confidence in the next Ukrainian government, 

build national unity, counter Russian propaganda and cyber-attacks, and sustain momentum for key 

reforms 

Furthermore, in response to Russian aggression, the United States has committed over $1 billion in 

training and equipment since 2014 to help Ukraine defend its sovereignty and territorial integrity, better 

monitor and secure its borders, and deploy its forces more safely and effectively. The goal of U.S. 

security assistance in Ukraine is to support its sovereignty and territorial integrity through train, equip, 

and advise efforts that make Ukraine's Armed Forces more capable and professional, and support 

defense institutional reform. Our FY 2019 request supports these aims, including $20 million in 

Foreign Military Financing assistance for Ukraine. 

ln Georgia, we have a steadfast partner whose efforts to reform are one ofthe good news stories in a 

tough neighborhood. Our FY 2019 assistance request of just over $31 million will help Georgia 

counter Russian aggression by diversifying its economy, fostering a business environment that is 

grounded in rule of law and friendly to American businesses, and gives rural communities susceptible to 

Russian malign activities new economic opportunities. U.S. assistance will also strengthen the rule of 

law by helping to make Georgia's laws and courts fair and independent. Our support will improve 

Georgia's energy security by developing renewable energy sources, connecting it with the European 

energy market, and optimizing distribution networks. Our security assistance from prior year 

appropriations enables Georgian forces to work more searnlessly and effectively alongside American 

and NATO troops in NATO missions, improve their territorial defense capacity, and protect Georgia's 

borders. Finally, U.S. support will bolster civil society, enabling it to act as a constructive monitor of 

government actions and policies; to advance peace and stability through non-violent resolution of 

conflicts; and to help Georgian journalists to report ethically and accurately 

ln Moldova, we are working to help the country become democratic and prosperous, secure within its 

internationally recognized borders, governed by effective, transparent, and accountable institutions, and 

guided by the Western-oriented aspirations of its people. Our FY 2019 assistance request of just over 

$17 million reflects these objectives. In the face of entrenched corruption and pervasive Russian malign 

activities, the challenges are great. Nevertheless, we continue to push for hard reforms, including those 

needed to decisively repair Moldova's financial system, improve its economic governance and business 

climate, and attract domestic and foreign investment, including opportunities for American businesses. 

Our continuing support to our Western Balkan partners prioritizes advancing the normalization of 

Kosovo-Serbia relations and their integration into the Western community of nations; facilitating 

political reform and reconciliation in Bosnia and Herzegovina; implementing the Prespa Agreement 

resolving the name dispute between Macedonia and Greece and unblocking the path to Macedonia's 

Euro-Atlantic integration; and enhancing the region's capabilities to fight organized crime, corruption, 

and terrorism. Corruption is the currency of Russian malign activities in the Balkans, and it is a serious 

threat to democratic systems and stability. To root it out, we are working with national governments to 

improve transparency and accountability; and with civil society and independent media, to lead the 

charge for refonns and root out corrupt actors. Exposing corruption through investigate journalism has 

become a key mechanism for ensuring the stability and legitimacy of democracies throughout the 

region. 
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Finally, pursuing this goal also means supporting the democratic aspirations of the people of Armenia, 

including support to ensure that the upcoming elections are free and fair; and preserving their freedom to 

choose further integration with the West Tt means staying in the game in places where the challenges 

are tough and peoples' democratic aspirations are under pressure, like Azerbaijan and Belarus. In such 

countries, we will continue to compete for positive influence and seek to preserve the possibility of a 

democratic future. 

Our fourth strategic goal is to work with our Allies, the EU, and partners to stabilize the Southern 

frontier, where recent migration flows have sent ripples through the heart of Europe, even as Russian 

competition in the Eastern Mediterranean is increasing. This includes working with nations like Italy to 

build a shared, multi-prong initiative on migration that addresses all aspects of the challenge, from 

onshore North Africa/Middle East stability, to better coordination ofNA TO, EU, and bilateral aid to 

boost maritime and border security, to building the capacity of our southern partners to fight terrorism 

and deny terrorists safe haven. We must also establish a stronger, long-term U.S strategic presence in 

the Eastern Mediterranean. To do so, our diplomatic priorities include stabilizing the U.S.-Turkey 

relationship and keeping Turkey anchored in the West, which will require the release of our unjustly 

detained U.S citizens and three locally employed statf. 

Beyond Turkey, we also prioritize cultivating Greece as an anchor of stability in the region; cementing 

the integration of the Western Balkans' within Western institutions; and supporting a process in Cyprus 

to establish a bizonal, bicommunal federation. 

Fifth, we will uphold Western democratic principles and institutions, which are key to our security and 

prosperity. Preserving the West is not just a material undertaking. The cause of democracy increases 

America's security and prosperity as well. Yet these values are under threat in a way we did not foresee 

in 1989. To counter this threat, we will continue to defend fundamental individual liberties, such as 

freedom of speech and the press, and religion, against abuses by state power and other threats. While 

we will not impose our values on others, we will offer our partnership to those who share them. Tn line 

with this goal, our FY 2019 foreign assistance request includes over $150 million to support 

democracy and governance refonns in the region. 

Finally, our success in achieving all of these goals depends heavily on maintaining the confidence of the 

American people, who have entrusted to the Department of State and US AID their taxpayer dollars in 

support of our national security. To this end, we will innovate in our management and use of 

information technology to centralize services and reduce costs. We will also seek to strengthen country 

self-reliance through our assistance programs so that our aid is ultimately no longer needed, and 

recipients become full members of the Western community of nations, working with us to uphold 

Western democratic principles and institutions around the world. 
12

Mr. ROHRABACHER. Thank you very much. 

Ms. Puma. 

STATEMENT OF MS. EMILIA PUMA, ACTING DEPUTY ASSISTANT SECRETARY, BUREAU OF SOUTH AND CENTRAL ASIAN 

AFFAIRS, U.S. DEPARTMENT OF STATE 

Ms. PUMA. Chairman Rohrabacher, Ranking Member Meeks, and 

members of the subcommittee, thank you for inviting me to appear 

today to discuss the administration’s fiscal year 2019 budget request for Central Asia. 

I have submitted prepared remarks for the record as well. Today 

my testimony will cover our request for Kazakhstan, Uzbekistan, 

Tajikistan, the Kyrgyz Republic, and Turkmenistan. 

I want to begin by extending my heartfelt sympathies to the families of the two American citizens killed in Tajikistan in a senseless 

terrorism act last July. We stand with those families and are working closely with Tajik authorities in the ongoing investigation. Both 

victims were brave individuals who represented the best of America. 

The administration recognizes the critical role Central Asia plays 

in the world economy and political system. Neighboring Russia, 

China, Iran, and Afghanistan, these five proud nations have sought 

to maintain their sovereignty by navigating a quickly changing political landscape. 

Central Asia is experiencing a period of profound transformation. 

Depressed petroleum prices have increased the demand to diversify 

their economies. We continue to dedicate resources to building the 

region’s hydropower potential, linking surplus hydropower resources in Tajikistan and the Kyrgyz Republic with the energyhungry markets of Afghanistan and Pakistan. 

Political transitions are also underway. We are encouraged by 

the bold reforms championed by the President of Uzbekistan in economic development, rule of law, and human rights. 

Through his leadership, Uzbekistan is pursuing a neighbors-first 

strategy, seeking to put an end to decades-old border disputes. 

We appreciate Uzbekistan’s desire to support an Afghan-led and 

Afghan-owned negotiation to bring the war to a close and we continue to explore ways to work with Uzbekistan to help them 

achieve these goals. 

For fiscal year 2019, the department request $66.3 million for 

Central Asia. This includes $15.5 million for Tajikistan, the country in greatest need of development assistance, bordering Afghanistan and China. 

Assistance increases stability and economic growth, supports food 

security, and combats the spread of multi-drug-resistant tuberculosis. This also includes $10.6 million for Uzbekistan in support 

of their reform agenda including justice sector reforms, sustainable 

employment, and economic reforms. Assistance will, likewise, combat transnational crime including narcotics and trafficking in persons. 

For the Kyrgyz Republic, the administration requests $10.5 million to accelerate their economic growth. Assistance will also promote stability, regional security, civil society, human rights, and 

the rule of law. 

13

For Kazakhstan and Turkmenistan, the administration requests 

$1.7 million and $.4 million, respectively, to support their export 

controls and related border security as well as military-to-military 

training. 

Finally, the administration requests $27.5 million in regional 

funding for Central Asia to support efforts in economic 

connectivity, democracy in governance, stability and security, and 

to counter violent extremism. 

Funding would also address the spread of HIV/AIDS and support 

the organization for security and cooperation in Europe. 

Central Asia is a vital element of our South Asia strategy and 

our efforts to create a peaceful, stable, and prosperous Afghanistan. 

But Central Asia itself is a welcoming culturally-rich land of 

enormous economic potential. We welcome the subcommittee’s review of our fiscal year 2019 budget request and look forward to 

working together to support this region. 

Thank you. 

[The prepared statement of Ms. Puma follows:]

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Written Testimony of Emilia A. Puma 

Acting Deputy Assistant Secretary for South and Central Asian Affairs 

Before the House Foreign Affairs Subcommittee for 

Europe, Eurasia, and Emerging Threats 

Thursday, September 27, 2018 

Chairman Rohrabacher, Ranking Member Meeks, and members ofthe 

subcommittee- thank you for inviting me to appear before the House Foreign 

Affairs Subcommittee for Europe, Eurasia, and Emerging Threats to discuss the 

Administration's FY 2019 Budget Request for Central Asia and our regional 

efforts. Today, my testimony will cover our requests for Kazakhstan, Uzbekistan, 

Tajikistan, the Kyrgyz Republic, Turkmenistan, and our regional efforts in Central 

Asia. 

I want to begin by extending my heartfelt sympathies to the families of the 

two American citizens killed in Danghara, Tajikistan in a senseless act of terrorism 

last July. We stand with the families of the victims and are working closely with 

Tajik authorities in the ongoing investigation. Both victims were brave individuals 

who represented the best of America to this critical part of the world. 

Central Asia- Reforms and Openings 

The Administration's South Asia Strategy leverages Afghanistan's shared 

history and economic, political, and cultural connections with the five countries of 

Central Asia. The Administration recognizes the critical role these countries play 

in the world economy and political system, as well as their historical role as an 

essential part ofthe Silk Road that connected Westem and Eastemmarkets through 

overland trade. Neighboring Russia, China, Iran, and Afghanistan, these five 

proud nations have sought to maintain their sovereignty by navigating a quickly 

changing political landscape. 

I was privileged to witness the culture and traditions of these countries in 

September when I represented the United States at the biannual World Nomad 

Gan1es in the Kyrgyz Republic. Americans, including cowboys, archers, and 

Peace Corps volunteers competed in traditional nomadic sports such as falconry, 

wrestling, and sports on horseback. Our delegation, team, and cultural perfonners 

were warmly welcomed by the peoples of Central Asia, who were eager to learn 

more about American culture. Such interactions help dispel stereotypes and 

misinformation, and provide an opportunity to demonstrate our respect for the 

cultures of the region. Our attendance reinforced U.S. commitment to the region; 

1 
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and our Kyrgyz hosts expressed their deep appreciation and viewed our visit as an 

important step towards improving bilateral relations. The greatest assets of U.S. 

diplomacy in the region are our presence, access, and the promise of America 

itself 

I also witnessed the generosity and leadership of Central Asians when I 

attended the Afghan Women's Empowennent Forum in Kazakhstan, where 

Advisor to the President Ivanka Trump lent her support through a well-received 

video statement. This oil-rich Caspian state has long been a regional and global 

leader, in no small part because of its decision to renounce its legacy nuclear 

weapons at independence and become a model in nonproliferation. Today, 

Kazakhstan is using its wealth and influence to support our South Asia Stratet\Y in 

Afghanistan, helping train Afghan security forces and empower Afghan women. I 

was impressed by the joint project ofthe European Union, Kazakhstan, and 

Uzbekistan to provide vocational training and education to Afghan women, as well 

as Kazakhstan's commitment to expanding its scholarship program for Afghan 

women. 

Central Asia is experiencing a period of profound transfommtion. 

Depressed petroleum prices have strained hydrocarbon based economies, 

increasing the demand to diversifY those economies toward other sectors. Our 

assistance request continues to help these countries pursue diversified and 

sustainable economic growth. Similarly, we continue to dedicate assistance 

resources to building the region's hydropower potential, with the aim of linking 

surplus hydropower resources in Tajikistan and the Kyrgyz Republic with the 

energy-hungry markets of Afghanistan and Pakistan. We will continue to support 

the liberalization ofthese countries' economies and high-standards of 

infrastructure driven by free market demand. 

Political transitions are also tmderway. We are encouraged by the bold 

reforms championed by Uzbekistan's President Mirziyoyev, including in the areas 

of economic development, rule oflaw, and human rights. Through his leadership, 

Uzbekistan is pursuing a "Neighbors First" strategy, seeking to put to an end to 

decades-old border disputes. He has taken on a constructive leadership role in the 

region, meeting with neighboring heads of state regularly and signing historic 

accords, including on sharing water resources and clearing minefields. We 

appreciate Uzbekistan's desire to support Afghan-led and owned negotiations to 

bring the war to a close, and we continue to explore ways to work with Uzbekistan 

to help achieve those goals. 

2 
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The United States continues support of the "C5+ 1" regional diplomatic 

platfom1 that brings together the United States and the five states of Central Asia. 

This platform catalyzes economic, environmental and security cooperation through 

assistance and engagement. The underlying goal of the C5+ 1 is to help Central 

Asian states maintain sovereignty and to improve cooperation with each other to 

help resist economic and political pressures from Russia. The C5+ 1 framework 

also encourages expanding economic, energy and security linkages, to help secure 

and stabilize Central Asia's borders, and stem the trafficking of illicit goods, 

including narcotics. We continue to support Central Asia's efforts to control its 

borders and defend its security. 

FY 2019 Budget Request 

For FY 2019, the Department requests $66.3 million for Central Asia. This is a 

$9.8million reduction (12.9 percent) from our FY 2018 request. 

• This includes $15.5 million for Tajikistan, the country in greatest need of 

development assistance, which borders both Afghanistan and China. 

Assistance increases stability and economic growth in Tajikistan, supports 

food security, and combats the spread of multi-drug resistant tuberculosis. 

• This includes $10.6 million for Uzbekistan to support President 

Mirziyoyev's refom1 agenda, including justice sector retom1s, diversification 

in agriculture, sustainable employment, and economic reforms that promote 

the private sector and attract trade and foreign direct investment. Assistance 

will also strengthen forensics capabilities and combat transnational crime, 

including trafficking in persons and narcotics. 

• For the Kyrgyz Republic, the Administration requests $10.5 million to 

enhance the competitiveness of small enterprises, to accelerate business 

growth and create jobs. Assistance will also promote stability, regional 

security, civil society, human rights, and the rule oflaw. 

• For Kazakhstan and Turkmenistan, the Administration requests $1.7 million 

and $0.4 million respectively, to support their export controls and related 

border security, as well as military-to-military training. 

• Finally, the Administration requests a total of $27.5 million in regional 

funding for Central Asia including: 

o $6.8 million to support C5+ I regional cooperation efforts in economic 

connectivity, energy, and democracy and governance; 

o $9.8 million to fund cross-border programs that leverage donor 

support for stability and security, counter violent extremism, and 

combat transnational crime; 

3 
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o $4.5 million to address the spread ofHIV/AIDS and protect against 

infectious diseases; and 

o $6.5 million to support the Organization for Security and Cooperation in Europe's efforts to promote democracy and human rights, 

protect minorities, and advance media freedom. 

Looking Forward 

Central Asia is an important element of our South Asia Strategy and our 

efforts to create a peaceful, stable, and prosperous Afghanistan integrated 

economically in the region. But Central Asia itself is a welcoming, culturally rich 

land of enormous economic potential. We welcome the Subcommittee's review of 

our FY 2019 budget request, and look forward to working together to support this 

vitally important region. 

4 
18

Mr. ROHRABACHER. Thank you for your testimony. 

Mr. Bierman. 

STATEMENT OF THE HONORABLE BROCK BIERMAN, ASSISTANT ADMINISTRATOR, BUREAU FOR EUROPE AND EURASIA, 

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT 

Mr. BIERMAN. Chairman Rohrabacher and Ranking Member 

Meeks, on behalf of the U.S. Agency for International Development, 

I would like to take this opportunity to thank you to be able to testify today and I would ask that my written remarks be included for 

the record. 

I would like to start off by paraphrasing the great observer of democracy, Alexis de Tocqueville, who noted that true friends of liberty must remain constantly vigilant and ready. 

As I will outline in my remarks, USAID remains vigilant and 

ready to assist our partners in Europe and Eurasia. Before I got 

into more detail, I would like to highlight three points from my 

confirmation hearing last November. 

First, I spoke about the challenges of countering Kremlin malign 

influence, and I will speak about that later. 

Second, I committed to focusing on youth programs and how we 

will build the next generation of leaders in our region. This commitment is coming to fruition through our European Democracy 

Youth Network, now known as EDYN. 

Democracy demands a commitment from every generation to 

public service and their willingness to enter into dialogue with 

those who hold opposing views. 

The EDYN program will build a network of youth leadership 

across the region that will do exactly that. 

And third, I committed to strengthening communications with 

Congress, and over the last several months we have had high-level 

engagements including conversations with both you and your staff, 

and I look forward to continuing this effort and deepening our relationship. 

Mr. Chairman, over the past two and a half decades, the countries of E&E have made incredible strides. Half of our region partner countries have graduated from USAID assistance and joined 

institutions such as NATO and the European Union. They are all 

now close allies and key trading partners of the United States. 

USAID is proud of the role and its profound transformation in 

this process. In response to the progress, the Kremlin is stepping 

up efforts to undermine the gains and, for example, let me just give 

you a couple of examples. 

Frustrated farmers in northern Azerbaijan have personally told 

me that Russia frequently manipulates and restricts water supplies, and in July, Russia prevented truckloads of fresh apricots 

from crossing the border, wiping out farmers’ entire livelihoods. 

And last year, Russian cyber attacks in Ukraine infected 60 countries worldwide, causing billions of dollars of damage. 

Thus, while this budget is fiscally conservative, USAID stands 

vigilant and ready to achieve our U.S. foreign policy objectives by 

helping these countries consolidate democratic progress, increase 

their economic—and increasing their economic integration to the 

West. 

19

And so now let me cover the region. Ukraine continues to struggle with numerous fundamental challenges, particularly in the intense political, economic, and military pressure from Russia. 

Our assistance helps Ukraine to resist these pressures on its chosen path toward prosperity, democracy, and closer ties with the 

West. 

In particular, we continue to focus on reducing corruption, fostering much-needed decentralization, and spurring economic community development in conflicted areas in eastern Ukraine. 

Now, turning to Georgia, the request supports U.S. foreign policy 

objectives within the country by resisting malign Kremlin influence, further consolidating democratic and economic gains and enhancing energy security. 

Specifically, we are building on gains of increasing dynamic economy by promoting competitiveness and export potential and at the 

same time we are strengthening civil society to enhance rule of law 

by supporting a fourth wave of judicial reform. 

Now, moving on to Moldova, the request will support independent media, strengthening democratic institutions, and build 

more competitive economy integrating into Europe and diversify its 

energy supply. 

I must also note of the recent mayoral election in Chisinau which 

was unfairly annulled, and it’s a warning sign of backsliding in the 

region. Thus, we will be carefully watching Moldova’s democratic 

process before and after the parliamentary elections in February. 

Turning to the Western Balkans, USAID programs address the 

challenging and fragile institutions, weak growth, and rule of law, 

endemic corruption, and limited media freedoms in addition to responding to the issues of violent extremism, and increased Russian 

influence in the region. 

Next, I would just like to note two hopeful cases. In just a few 

days Macedonia will vote on a referendum which will clear the way 

for progress in the NATO and the EU. USAID is working with the 

state election commission to ensure integrity of this referendum. 

In Armenia, thanks to democratic breakthroughs, this past 

spring when citizens peacefully gathered to demand political 

change, the new government appears committed to reforms and 

USAID will harness this momentum in Armenia by encouraging 

this civic engagement of newly mobilized citizens and providing 

targeted assistance to the government and civil society organizations. 

Next, I want to also note some changes taking place at USAID 

and how they will benefit the region. The agency’s new transformation initiative titled ‘‘Journey to Self-Reliance’’ will create 

conditions for partner countries to lead, finance, and implement 

their own development agendas. 

Key aspects include fostering democratic resources—key democratic resource base to sustain development, and expanding engagement in collaborative design with private sector. 

Mr. Chairman, before concluding, I would like to take this opportunity to tell you a bit about our countering Kremlin influence development framework. This framework will guide our programming 

to help countries withstand the Kremlin’s interference. 

20

Priorities include strengthening democratic institutions, the rule 

of law, expanding independent media, combatting corruption, increasing energy security, diversifying the economic sector, and advancing integration with the West. 

And finally, by noting that although the countries in the region 

boast many development achievements and successes, much remains to be done. Many of those successes, while impressive, are 

partial and subject to reversal. 

This budget request ensures USAID’s vigilance and readiness to 

build a more democratic and prosperous Europe and Eurasia. 

Thank you, Mr. Chairman. I appreciate it and I look forward to 

your questions. 

[The prepared statement of Mr. Bierman follows:]

21


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Statement of the Honorable Brock Bierman 

Assistant Administrator, Bureau for Europe and Eurasia 

U.S. Agency for International Development 

House Foreign Affairs Subcommittee on Europe, Eurasia, and Emerging Threats 

"Europe and Eurasia: Ensuring Resources Match Objectives" 

September 27, 2018 

Chaim1a11 Rohrabacher and Rm1king Member Meeks. on behalf of the U.S. Agency for International 

Development (USAID). I would like to thm1k you for this opportunity to testifY today on behalf of the 

President's Fiscal Year (FY) 2019 budget request for Europe and Eurasia. 

Mr. Chairman, the great observer of democracy Alexis de Tocqueville once stated, ''It is above all in the 

present democratic age that the tme friends of liberty and human grandeur must remain constantly 

vigilmlt and read) ... " This observation remains tmc today, a11d USAID remains vigilant and ready at this 

key moment to assist our partners in the Europe m1d Eurasia region. 

Before I go into more detaiL I would like to revisit three key points I made at my confinnation hearing. 

First I spoke about the challenge of the Kremlin's malign external influence in the region. Later in my 

remarks I will speak about our intense focus on this issue and our ne\v framework for Com1tering Kren1lin 

Influence. 

Second, I committed to a focus on youth and to ensuring that \Ve are targeting our resources on the neA1 

generation of leaders. 1l1is commitment is no\v coming to fn1ition in the fom1 of our ne\v European 

Democracy Youth Network (EDYN). Democracy demands from every generation a commitment not 

only to public service, but also a willingness to enter into dialogue with those who hold opposing 

views. The EDYN will build a network of youth civic leaders across the region to unite, share ideas and 

encourage constmctivc dialogue. 

Third. I committed to strengthening communication with Congress. Over the last several months of my 

tenure, we have had high levels of engagement with Congress, including conversations with you m1d your 

staff. I look forward to continuing and deepening that dialogue. 

Mr. Chainnan, over the past two and half decades the countries of the Europe and Eurasia region have 

made enonnous strides in overcoming major sociaL economic and political challenges on their paths 

toward full Euro-Atlantic integration. Half of our original partner countries no longer receive USAID 

assistance a11d joined institutions such as NATO a11d the European Union (EU). Many are now close 

allies and key trading partners of the United States. USAID is proud of the role it has played in the 

profound transformation that has taken place in the region over the last 25 years. 

In spite of the progress we arc making throughout the region, many of the countries where we work 

remain >ulnerable, and important achievements are now at risk. The Kremlin's malign foreign policy 

disrupts and subverts its neighbors' economics and political systems. For cxmnplc. fanners in northern 

Azcrbaijm1 who arc dependent on the Smnur River report that Russia frequently manipulates m1d restricts 

water supplies in a11 effort to exert economic and political pressure on Azcrbaijm1 m1d its people. l11rough 
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32307a-2.eps

a similar pattem of manipulative border control, at the height of apricot season this July, Russia stalled 

tmcks from Am1enia. Azerbaijan and Georgia at the border while the fresh fruit from local fanners rotted 

alongside the road, effectively wiping out the source of their livelihood. 

Thus, while this budget represents a shift towards greater fiscal restraint, US AID is focused on the 

Administration's key priorities of protecting U.S. national security, fostering opportunities for U.S. 

businesses, leveraging resources of global stakeholders, embracing the private sector as a key driver of 

sustainable development, and focusing on providing maximum value to the U.S. taxpayer. 

Mr. Chaim1m1, I would like to start by discussing what we refer to as our ''frontline" states: Ukraine, 

Moldova_ and Georgia. These are countries where Kremlin interference is at its most intense, and \vhich 

±ace the most serious challenges in resisting Moscow's pressure. 

Russia's use of force to attempt to chm1ge borders in Ukraine and its occupation of the Georgian 

territories of Abkhazia and South Ossetia violates the sovereignty of these countries m1d interferes with 

their efforts to move forward on the path toward Euro-Atlantic integration. Russia has also failed to 

witlldraw all of its forces ±rom Moldova. consistent witll its I999Istanbul OSCE Summit commitments. 

The FY 2019 request will allow USAID to continue to support reforms to their political systems, 

strcngtilcn their economics, and enable them to better resist malign Kremlin in±lucncc. 

The FY 2019 request seeks $204 million for Ukraine m1d demonstrates America's commitment to assist 

tile country on its chosen patll tovvard prosperity. democracy. freedom and integration with the \Vest. 

Ukraine continues to struggle with numerous challenges. particularly with high levels of cormption as 

well as the intense political. economic and military pressures resulting from Russim1 aggression. 

Despite these challenges. anwng the notable successes achieved last year with our support, Ukraine 

further decentralized its govemment. bringing increased revenues and authorities into the hands of 

citizens in 665 ne·w]y consolidated communities. USATD programs assisted communities in the 

consolidation process. advised on the efficient allocation of increased budget revenues. m1d promoted 

local economic development. Our assistance has helped bring about an increase in local revenues. \Vhich 

rose by $1.6 billion in 2017 as compared to the previous year, bringing local government budgets to a 

total of$6.9 billion. 

In eastern Ukraine we helped local communities improve I6 new, modern administrative services centers 

in order to more efticiently deliver services and reduce opportunities for corruption. Over one million 

citizens from both the govennnent and Russia-<Oontrolled areas of the Donbas region in eastern Ukraine 

arc now receiving better services as a result of this intervention. 

The FY 2019 request will allow USAID to continue to build on these successes and address the divisive 

impacts of Russian aggression and the consequences of the ongoing am1ed conflict through activities that 

build a Ukraine that is more united around democratic refonns_ European integration, and common civic 

values. Focusing on eastem m1d southem Ukraine. USATD will continue to mitigate the challenges 

associated \Vith conflict and promote greater consensus and unity among Ukrainians, both in conflictaffected communities and across the country. 

2 
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Turning to Georgia, USA TO supports our foreign policy objectives by sustaining Georgia's progress on 

democratic consolidation, economic growth_ Western integration, and territorial integrity. The FY 2019 

request of $31 million represents a substantial investment in the country's ongoing efforts to: (I) 

consolidate economic gains; (2) enhance energy security from Kremlin interference; and (3) and 

strengthen democratic institutions_ In recent years, Georgia has made great strides toward Euro-Atlantic 

integration, holding two free and fair elections, signing an EU Association Agreement, and earning visafree travel to the EU for its citizens_ 

The FY 2019 request will penni! USAID to continue to support inclusive, sustainable economic growth 

and energy security. Our investments will focus on areas such as agriculture~ small and medimn-sized 

enterprises: developing a more competitive Georgian workforce: and improving the business- enabling 

environment_ U.S_ assistance will also target those sectors that will encourage U_S_ private sector 

investments, and those 'vhich shmv the most potential to stimulate the Georgian economy, such as the 

service industry, light manufacturing, and logistics. Fina11y, our programming vvi11 increase energy 

security by advancing the production of local renewable energy, and by promoting inter-regional 

connectivity and trade diversification to reduce reliance on Russian resources_ 

The President's request will further allow USAID to strengthen Georgia's democracy_ It will work to 

enhance the rule of law: advance Georgia's commitment to the Open Government Partnership; support 

civil society participation and advocacy tor citizcn-<:cntercd legislation and reforms: and assist 

independent media in countering Kremlin--sponsored disinfonnation_ 

Some of the major successes we had this past year in Georgia include the following: 

In the agricultural sector, we made some remarkable achievements. We facilitated the extension of 

agricultural credit to nearly 80,000 fam1ers. leveraged $12 million in private sector investments. and 

facilitated $26 million in export sales of agricultural products. 

In the judicial sector. USA TO made impressiYe gains, including supporting amendments to laws that 

improved judicial appointment processes, transparency of the judiciary, and rules governing judicial 

transfers. As a result of civic advocacy supported by USAID, the new Georgian constitution has better 

descriptions of the concepts of discrimination and the right to a fair trial. 

The President's budget request of $17 million tor Moldova will seek to counter Kremlin intluence and 

disintonnation by supporting independent media_ and diversifYing the economic sector and its energy 

supply. Assistance is critical for countering disinformation campaigns and increasing public awareness of 

the benefits of integration with Europe_ 

Our assistance will bolster the capacity of local public administrators in Moldova and improve the 

relationships bet\veen citizens and their local governments. These efforts vvill help increase civic 

engagement at the grassroots level and enhance the effectiveness of local govennnents. Our assistance 

will also work to bolster local civil society, especially in mral areas. 
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USA TO will also support the growth and development of targeted industries and the diversification of the 

economic sector. This diversification will help Moldova reposition its focus to new markets. This support 

will also encourage Moldovan producers to adopt Western standards and infuse new technologies into the 

Moldovan economy. Importantly, our economic growth programming will also create stronger import 

and export opportunities for American businesses by improving the business enabling environment, 

streamlining procedures and reducing corruption, and as a result, the cost of doing business. 

A major indicator ofthc success of our work in Moldova last year was the percentage of Moldova's 

exports to the EU reaching an astmmding 67 percent. USAID has helped decrease the Kremlin's 

economic leverage over Moldova. rendering the Kremlin's persistent, politically motivated restrictions 

much less effective. Moldovan producers are obtaining higher prices for their goods, along with more 

stable business relationships. which strengthen tics with Europe at a grassroots level. 

Tuming to the Westem Balkans. the region continues to be weighed do\\11 by fragile institutions, weak 

nlle oflmv, endemic conuption_ and limited media freedom. In addition_ the region faces issues of violent 

extremism and malign influence. as Russia tries to hinder the region's integration and alignment \Vith the 

West. Other challenges that have slowed the region's advance towards Euro-Atlantic integration include 

an unwieldy system of govemance in Bosnia and Herzegovina (Bosnia): and entrenched public sector 

corruption, which is rife throughout the region. 

The FY 2019 budget request will support assistance to strengthen democratic institutions, including the 

judiciary and civil society, and will help the region build on recent momentum toward more effective 

democratic govcnmncc. In just a few days Maccdonians will vote in a referendum on a new nm11c ±Or the 

country, which would clear the way for progress on NATO and EU accession. Over the past year. two 

Balkan countries. Albania and Kosovo, have held local and parliamentary elections which were broadly 

accepted as free and fair. 

In the energy sector. the President's FY 2019 budget request will facilitate the region's upgrading of its 

energy infrastructure, diversifying energy sources, and implementing of critical market refonns. These 

changes will help reduce the Kremlin· s ability to interfere in the region and will further open the region to 

investment opportunities for U.S businesses. 

USAID assistance will support legal and regulatory reform and capacity building to ensure transparent, 

effectiye rule oflaw and enforcement. Such initiatives also promote increased economic integration with 

Europe and help cement the relationship of Balkan countries with the West, thereby limiting Russia's 

ability to usc economic levers to manipulate them. 

Next, it is worth noting the hopeful case of Am1cnia. T11is spring the country experienced an important 

democratic breakthrough, as its citizens peacefully gathered to demand political change and an end to 

cormption. With a new govemment and Prime Minister that appear committed to refonllS and to tackling 

corruption_ \Ve see a range of new opportunities to support this transition -and positive change for the 

people of Am1enia. 

4 
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An important initiative at USAID has been the new Countering Kremlin Influence Development 

Framework. 

Malign Kremlin interference manifests itself in the political, economic, energy, social and information 

spheres of countries throughout the Europe and Eurasia region. The Kremlin is waging a campaign to 

undermine core Euro-Atlantie institutions and to weaken support for democratic and free-market systems 

among its neighbors. These actions create considerable new challenges to the reform efforts of countries 

in the region and towards greater integration with the West. 

Countering malign Kremlin influence in Europe and Eurasia is a U.S. strategic priority. Countering the 

Kremlin's malign influence in Europe and Eurasia is critical to the '·four pillars" of our national security, 

as such c±forts help to protect the homeland, promote American prosperity, preserve peace through 

streng±b and advance American influence. 

Our Countering Kremlin Influence Development Framework (CKI Framework) addresses key areas of 

vulnerability in countries in the region. including in democratic institutions and the nde of lmv, the 

information space, energy security, and the economic sphere. Corruption, as an important cross-cutting 

challenge, is addressed in each sector. This CKI Framework is USATD's response to programming 

associated with the Countering Russian ln±1ucncc Fund in the Countering America's Adversaries through 

Sanctions Act. 

USAID further believes that partner countries that build strong democracies and market-oriented 

economics, will be more resilient to Kremlin attempts to exploit weaknesses in their political and 

economic institutions. 

Importantly, whether the focus is on Countering Kremlin Influence goals or other objecti;es, USAID is 

committed to taking every pmdent step to extend the reach and effectiveness of taxpayer resources. This 

includes strengthening domestic resource mobillzation programs so the partners can more effectively 

finance their own development fi.1ture. It includes taking steps to ensure that our program and procedures 

are more private enterprise friendly. so that \Ve can better leverage our resources~ bring new ideas and 

partners to our work, and increase opportunities for American businesses. 

Mr. Chairman, I would like to conclude by noting that although the countries of this region boast many 

development achievements and successes, much remains to be done. Many of those successes, while 

impressive, are partial and subject to reversal. The FY 2019 budget will allow USAID assistance in 

Europe and Eurasia to continue efforts to strengthen and gro" the private sector; diversify energy 

resources in order to increase energy security: and build ~md reinforce democratic institutions grounded in 

the rule of law. With deliberate, sophisticated. and intensified Kremlin c±lorts undennining progress. the 

development path forward in the region has become more complex --and more challenging. As a result, 

the vigilance and readiness ofUSAID to continue assistance is more important than ever. In contrast a 

democratic and prosperous Europe and Eurasia region_ integrated into the global community_ wi11 

enhance America's security. benefit the U.S. economy, and stabilize this cmcially important region. 
26

Mr. ROHRABACHER. Thank you very much. 

And, now, I am going to see if I can pronounce your name now. 

Let’s see, Ann Marie Yastishock. That’s as good as I am going 

to——[laughter]. 

All right. Well, thank you very much. I mispronounce her name 

every time she comes. She always has the best testimony. So it’s 

good. 

You may proceed. 

STATEMENT OF MS. ANN MARIE YASTISHOCK, DEPUTY ASSISTANT ADMINISTRATOR, BUREAU FOR ASIA, U.S. AGENCY FOR 

INTERNATIONAL DEVELOPMENT 

Ms. YASTISHOCK. Thank you very much. 

Mr. Chairman, Ranking Member Meeks, and Representative 

Sherman, thank you for inviting me to testify on USAID’s role in 

advancing U.S. foreign policy priorities in Central Asia. I ask that 

my testimony also be included for the record. 

USAID’s fiscal year 2019 request of $48.3 million supports our 

bilateral efforts in Uzbekistan, Tajikistan, and the Kyrgyz Republic, as well as for the Central Asia regional programs covering all 

five countries. 

With fiscal year 2019 funds, USAID will strengthen democratic 

institutions, focusing on improving governance, amplifying the 

voice of civil society, advancing rule of law, and supporting the 

independence of media. 

In economic governance, USAID will create a legal enabling environment for competitiveness, enhance trade facilitation, and promote responsible infrastructure development including transforming the energy sector while encouraging U.S. private sector investment. 

Enhanced energy and trade within Central Asia promotes greater integration and reduces these countries’ dependence on Russia 

and China. 

USAID’s programs are a critical component of the administration’s South Asia strategy by advancing regional stability, promoting partnerships between South and Central Asia, particularly 

Afghanistan, and supporting the sovereignty and regional 

connectivity of the Central Asian countries. 

Accordingly, we will prioritize building local capacity in Central 

Asia, engaging the private sector in the growth process, and helping partner countries mobilize domestic and international resources 

to fund their own development agendas, which will move them forward on their journey to self-reliance. 

In Uzbekistan, USAID is leveraging strategic openings, working 

to strengthen civil society and rule of law, expand trade and energy 

cooperation, and strengthen health outcomes. 

For example, by digitizing the case management in civil courts 

nationwide, USAID has helped the Uzbek courts cut the average 

length of cases in half. 

Earlier this year, USAID and Uzbekistan signed four MOUs to 

enhance our cooperation in rule of law, trade, energy, and to assist 

the country accede to the World Trade Organization. 

27

With 2019 resources, USAID will help Uzbekistan open its economy, fight corruption, and improve the business climate for U.S. 

companies. 

U.S. technology and products introduced over the last 2 years 

have resulted in Uzbek companies purchasing everything from 

John Deere tractors to 600,000 walnut saplings from California 

nurseries. 

In health, USAID assistance helped reduce tuberculosis incidence 

in the country by 44 percent from 2001 to 2016, and helped decrease TB mortality by almost 80 percent in the same time period. 

In the Kyrgyz Republic, USAID will use 2019 resources to boost 

private sector competitiveness and build on our successful efforts in 

health and education. 

USAID is also working to strengthen the financial sustainability 

of local media outlets. In education, we’ve improved the reading 

skills of 65 percent of public school primary students and at the 

government’s request have expanded our reading interventions to 

every public primary school in the country. 

In Tajikistan, USAID will use the 2019 resources to continue to 

foster inclusive development and reduce malnutrition. New technologies introduced by USAID have quadrupled high-value fruit 

and vegetable production and sourced about 50 crop varieties from 

California. These efforts have helped reduce stunting from 31 percent to 18 percent over the last 5 years. 

In health, the first patients treated with a new U.S. drug are 

completely cured of multi-drug-resistant tuberculosis where once 

the disease was virtually fatal. 

Lastly, USAID will use 2019 resources to engage and bring together the five Central Asian countries including through the U.S.-

sponsored C5+1 initiative to promote cooperation in trade, energy, 

and water as well as to improve conditions for labor migrants, reducing their vulnerability to radicalization. 

Our budget request will also enable USAID to help establish a 

market-based Central Asia regional electricity market. 

Mr. Chairman, thank you for your support of USAID’s programs 

in Central Asia. Investing in Central Asia’s development remains 

in our national interest. 

With our fiscal year 2019 budget request, we are committed to 

making the most out of every taxpayer dollar to ensure that our 

partner countries move forward on their journeys to self-reliance 

and we achieve the objectives of the South Asia strategy. 

Thank you. 

[The prepared statement of Ms. Yastishock follows:]

28


32307d-1.eps

Statement of Ann Marie Yastishock 

Deputy Assistant Administrator, Bureau for Asia 

United States Agency for International Development 

Before the House Committee on Foreign Affairs, 

Subcommittee on Europe, Eurasia and Emerging Threats 

"Europe and Eurasia: Afalch ObwctJves" 

September 27, 2018 

Chairman Rohrabacher, Ranking Member Meeks, and Members of the Subcommittee: Thank 

you for inviting me to testify on the vital role of the United States Agency for International 

Development (USAID) in advancing U.S. foreign policy priorities in Central Asia. It is an honor 

to testifY before this committee and a pleasure to be here alongside my USAID and State 

Department colleagues. 

USAID' s development and humanitarian assistance is key to achieving prosperity and stability 

for our Central Asian partner countries, as well as for the United States. The President's Fiscal 

Year (FY) 2019 budget request for USAID-managed assistance in Central Asia is $48.3 million. 

This request supports USAID etl'orts in Uzbekistan, Tajikistan, and the Kyrgyz Republic, as well 

as for Central Asia Regional programs. Our regional energy and trade programming also 

supports development in Kazakhstan and Turkmenistan. 

Central Asia's Role in the South Asia Strategy 

Central Asia is geostrategically important to the United States, and our alliances with those 

countries serve as a counterweight to China and Russia. The need for political and socioeconomic stability is paramount to our partnerships with the Central Asian republics, which are a 

growing market for U.S. goods. USAID's programs are critical to achieving the goals of the 

Administration's National Security and South Asia strategies fostering regional stability, 

deepening our strategic partnership with India, and supporting the sovereignty and regional 

connectivity of Central Asian countries, which share economic and humanitarian interests in 

neighboring Afghanistan. 

USAID' s programs aim to foster regional stability and deepen our strategic engagement with 

Central and South Asia. Our programs help stabilize the region, including Afghanistan, through 

increased trade and energy linkages and closer people-to-people ties. We are helping prevent 

transboundary conflict that could destabilize the region and its neighbors by working on often 

volatile cross-border issues such as water management, energy generation, and trade cooperation. 

We are also supporting India's and Kazakhstan's emergence as pillars of stability in the region, 

including building their capacity to be a donor in their own right. 

Strengthening Democratic Governance 

Democratic institutions in Central Asia have been significantly tested in recent years. 

Adversarial foreign influences, including Russia and China, have exploited weaknesses to 

undermine democratic institutions and thus, the long-term stability of our partner countries. 

USAID will focus on strengthening democratic institutions in this region and will use FY 2019 

resources to promote improved governance, foster evidence-based policy analysis and advocacy: 
29


32307d-2.eps

implement anti-corruption initiatives; support media independence and information integrity; and 

amplify the voice of civil society. 

In Uzbekistan, FY 2019 resources will support the country's democratic opening, including by 

bolstering tbe rule of law through our work with civil courts. By digitizing case management in 

civil courts nationwide, we have helped cut the average length of court cases in half, reducing a 

backlog and building confidence in the system for citizens and businesses. Based on a request 

from the Government of Uzbekistan, USAID initiated a new program in August to reform 

judicial institutions. 

In the Kyrgyz Republic, the FY 2019 request will support USAID's work with civil society to 

strenf,>then government-citizen engagement, bolster civic activism, promote government 

accountability, and enhance the legal enabling environment for civil society organizations. At the 

sub-national level, we have assisted 16 municipalities to mobilize local resources to improve 

critical public services such as waste management and clean water. USAID is also working to 

strenf,>then the financial sustainability ofKyrgyzstani media outlets. Most are not financially 

viable and their dependence on wealthy backers leads them to broadcast propaganda produced by 

foreign interests. 

Strengthening Jiconomic Governance 

Despite Central Asia's growing wealth, its generally weak regulatory environments, constrained 

fiscal space, lack of infrastructure, and corruption impede partner countries' growih and create 

opportunities for foreign predatory tactics that often lead to economic and political dependency. 

These challenges also hinder free and fair competition by American companies, thus 

discouraging U.S. private sector investment in the region's fast-growing markets. USAID 

programs will focus on creating an enabling regulatory environment for competitiveness, trade 

facilitation, and responsible infrastructure development, including the transformation of the 

energy sector. 

FY 2019 resources will enable USAID to play a central role in helping facilitate energy 

connectivity in Central Asia. In partnership with the State Department and other donors, we are 

helping to establish a market-based Central Asia Regional Electricity Market (CAREM) that will 

enhance regional energy security and economic stability. CAREM complements the Central 

Asia-Soutb Asia Electricity Transmission and Trade Project (CASA-1000), which is designed to 

export excess hydro power from Tajikistan and the Kyrgyz Republic to Afghanistan and Pakistan 

and generate transit fees and electricity for Afghanistan estimated to be worth $50 million 

annually. CAREM will build regional institutions that ensure fair transactions; have efiective 

dispute resolution processes; and promote a level playing field for technical, environmental, and 

taxation ref,>ulations as well as fair pricing and grid access. 

We help to improve the enabling environment for US. businesses by helping Central Asian 

countries comply with rules-based trade. At the seventh annual Central Asia Trade Forum in 

October 2017, we helped facilitate more than $26 million in letters of intent to conduct future 

trade. Next month's 2018 F arum in Uzbekistan is expected to draw even greater interest from 

Central Asian and US. firms. USAID also helped strengthen links between Central Asia and 

Lithuania and Latvia that resulted in over $61 million in agribusiness and transport agreements. 

2 
30


32307d-3.eps

Increasing economic ties to the Baltic States, and with each other, will enable Central Asian 

producers reduce their dependence on Russia, the destination for the majority of Central Asia's 

agricultural exports. 

USAID and Uzbekistan signed four MOUs this year to enhance our trade and energy cooperation 

and support judicial reform-- a major accomplishment in a formerly closed country. With FY 

2019 resources, the United States is helping Uzbekistan open its economy, fight corruption, and 

improve the business climate for U.S. companies. We are working with USTR to assist 

Uzbekistan accede to the World Trade Organization, and supporting the country's efforts to 

diversify its agricultural sector away from low-value commodities toward higher value 

horticulture. In the past two years, we have helped Uzbek companies purchase John Deere 

tractors and 600,000 saplings from California nurseries. In FY 2017, USAID held the 

Horticulture Business Forum in Uzbekistan, which brought together businesses from across the 

region and beyond to increase regional business connectivity. The Forum resulted in 38 letters of 

intent to conduct trade valued at over $40 million signed between companies in Central Asia, 

mostly from Uzbekistan, and companies in Europe and the Middle East. 

In Tajikistan, USAID will employ FY 2019 resources to develop the horticultural value chain to 

spur markets. Cold storage, which slows the deterioration of fruits and vegetables, helps fanners 

prolong their post-harvest season and sell their crops at higher prices. USAID is helping 

Tajikistan learn from Uzbekistan's success in cold storage management -- and strengthening 

relations between formerly hostile neighbors --while showing how easing trade restrictions 

between the two countries could great! y benefit both. 

More than half of Central Asia's population is under 30 and unemployment is high. As a result, 

millions have left Central Asia over the past few years in search of work; indeed, the Kyrgyz 

Republic and Tajikistan are two of the most remittance-dependent economies in the world. Five 

to seven million citizens of the Kyrgyz Republic, Tajikistan, and Uzbekistan live and work in 

Russia. These migrants often face economic hardship, abuse, harassment, and discrimination--

factors that increase vulnerability to extremist recruitment. 

USAID will use FY 2019 resources to bring together the five Central Asian states to improve 

conditions for migrants, including strengthening their resilience and thereby reducing their 

vulnerability to radicalization to violence. We educate potential migrants and their communities 

about the risks of radicalization to violence and promote safer migration practices. We are 

expanding reintegration services and developing employment alternatives that give young people 

options in their home countries. USAID will continue to adopt new approaches to deter 

radicalization to violence through a better understanding of violent extremists' online and inperson recruitment practices in Central Asia in order to build the resilience of communities and 

institutions. 

The FY 2019 request will enable USAID to help boost private sector competitiveness in the 

Kyrgyz Republic in order to reduce reliance on foreign remittances, which account for an 

amount approximately equal to one-third of the country's GDP. In addition, our economic 

growth funding has supported significant behavior change in nutrition-sensitive agriculture 

3 
31


32307d-4.eps

activity: breastfeeding rates increased from 29 to 63 percent injust three years and recipients 

greatly increased the diversity of the foods that they consumed. 

The FY 2019 budget request strengthens the Central Asia and US diplomatic and development 

platform, C5+ I, which addresses common challenges faced by the five Central Asian states and 

underpins efforts to create a more connected region for trade and investment, energy, the 

environment, and security. 

Journey to Self-Reliance 

As US AID Administrator Mark Green often says, ''We believe that every person, every 

community, and every country wants to be empowered to lead their own journey to self-reliance. 

We try to help our friends strenb>then policies that experience tells us are necessary for a country 

to reach self-reliance and, eventually, prosperity." Across our work, we prioritize building local 

ownership, engaging private enterprise, and helping partner countries mobilize resources from 

domestic and international sources to fund their development agenda. 

USAID' s FY 2019 budget request supports programs in economic growth and democracy and 

governance that both propel partner countries along their journey to self-reliance. Countries with 

regulatory environments that foster transparent and rules-based order and strong democratic 

institutions tend to attract more legitimate investors and avoid being subjected to the political and 

economic coercion of predatory forces. 

Health 

Healthy populations are crucial to achieving household and national economic growth. 

Investments in effective health systems are critical to averting major health shocks that drain 

countries' economies and impede growth. USAID's FY 2019 budget request will enable us to 

continue making strides to drive down one of the most infectious diseases-- tuberculosis (TB). 

Central Asia faces significant TB-related challenges: four of the region's five countries are 

among the 30 countries with the highest multi-drug resistant (MDR-TB) burden while the 

Kyrgyz Republic and Kazakhstan are among the 20 countries with the highest burden of 

extensively drug-resistant (XDR-TB) cases. 

The Kyrgyz Republic continues to experience the highest rate of new drug-resistant TB cases 

worldwide. New treatments introduced by USAID in 2017 halved the treatment time and 

recently cured the first XDR-TB patients to begin the new regimen. The Kyrgyz government was 

so impressed with our initial results that it expanded the use of these new treatments to the entire 

country this year. We also developed a database to improve budget management for TB 

hospitals, which the Ministry of Health expanded to every hospital in the country. Lastly, we 

replaced outdated textbooks with the first textbook specifically relevant to TB in the Kyrgyz 

Republic and in Central Asia that incorporates international best practices. 

In Tajikistan, USAID is expanding the use ofbedaquiline, the first new FDA-approved TB drug 

in over 40 years and is partnering with the government to pilot shorter, lower-cost MDR-TB 

treatments, which tal<e about 10 months, rather than the usual two years. At the end of 2017, the 

first group ofMDR-TB patients who enrolled in this shorter regimen completed their treatment 

4 
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32307d-5.eps

and has been tully cured of TB. With support from USAID and other partners, the Government 

plans to expand this shorter-treatment regime nationwide by the end of2019. 

USAID began partnering with the Government of Uzbekistan (GoU) to control TB in 2002 and, 

according to the GoU, TB incidence has dropped by 44 percent trom 200 I to 2016 and TB 

mortality has decreased by almost 80 percent in the same period. Ensuring that patients are 

treated with reliable medications is key to stemming the TB epidemic. In 2017, for the first time 

USAID began working with local manufacturers so that they will be able to produce 

international-grade TB drugs. 

£ducat ion and Food Security 

As with health, improving education and food security in Central Asia is crucial to boosting 

household and national wealth and resilience, thereby accelerating countries' self-reliance. FY 

2019 resources will be used to improve education in the Kyrgyz Republic and support Tajikistan, 

as a Global Food Security Strategy target country. 

In the Kyrgyz Republic, the FY 2019 request will enable us to continue working to improve 

education outcomes to prepare the next generation for greater employment opportunities. We 

have improved the reading skills of 65 percent of public school primary students, and at the 

request of the government, we have extended our reading interventions to every public primary 

school in the country. We have just launched a new activity to improve education access and 

quality to students with disabilities as well as ethnic minority children whose mother tongues are 

not the Kyrgyz language. We have also translated 10 children's books into Braille-- the first 

children's books in Braille in the Kyre\YZ lant,'llage. 

Tajikistan struggles to create jobs for the 70 percent of its population under the age of30. With 

64 percent of the country's population employed in agriculture, and recognizing that food 

insecurity affects health and labor productivity, the majority of the FY 2019 budget request for 

Tajikistan supports our etiorts to foster inclusive economic development and reduce malnutrition 

through market-led agricultural development We implement agriculture and nutrition programs 

in Tajikistan's poorest regions along the Afghan border. We introduced new technologies that 

quadrupled high-value fruit and vegetable production and sourced approximately 50 improved 

crop varieties trom California. These etiorts are also improving health and nutrition outcomes: 

stunting has fall en in the last five years from 31 percent to 18 percent and the proportion of 

children receiving a minimum acceptable diet has more than doubled. 

Conclusion 

Mr. Chairman, Central Asia is a strategically important region for the United States, with 

tremendous opportunity that is constrained by significant development challenges If the region 

is to increase its stability and realize its full potential, USAID must remain engaged in areas that 

further our strategic interests. With the FY 2019 budget request, USAID will continue making 

the most of every U.S. taxpayer dollar to ensure that the development decisions our partner 

countries make today help move them forward on their journeys to self-reliance and achieve the 

objectives of the South Asia Strategy. 

Thank you for the opportunity to appear before you today. !look forward to your counsel and 

questions. 

5 
33

Mr. ROHRABACHER. Well, thank you very much. Thank you to all 

the witnesses for their testimony and I am going to let Mr. Meeks 

lead off with the questions today. 

And Mr. Meeks, you may proceed. 

Mr. MEEKS. That means he wants to do something else behind 

me. 

No, I am kidding. [Laughter.] 

Thank you for your testimony, and I think that it’s tremendously 

important on what you have indicated. 

And so I would ask each and every one of you, you all agree that 

the work that you do, whether it’s USAID, whether it’s the State 

Department, is tremendously important for the people of the 

United States of America. 

Is that correct? Everybody. 

And it’s been helpful. I mean, we have seen meaningful results 

as a result of the diplomatic work that you do on the ground on 

a continuous basis. 

In fact, as a number of generals have indicated in the past, it 

may have even saved lives, in the long run. Would you all concur 

to that? 

Now, my concern is, because I think that in the past when I look 

at the severe cuts that are going to take place here, you know, at 

the level that they are, I don’t think, unless you can—you tell me 

otherwise, that either the State Department or USAID, running 

the programs that you have ran, just was foolishly spending money 

and not looking at it and trying to evaluate the programs with 

which you were in charge of, and working very closely with some 

of our allies in some of the countries in Europe and Eurasia and 

counteracting other countries who may try—who may not have the 

same—the same rules and values that we have. Is that also correct? 

Yeah? Okay. So then with this proposed budget, if it was to be 

enacted—I will start—what adjustments would USAID—let’s start 

with that, Mr. Bierman—have to make in order to sustain the current efforts so that we can continue to do what you’re doing, with 

the draconian cuts, you know? That we see 28 percent overall and 

we see how certain countries in the East are being cut, you know, 

some—you know, 63 percent. What do you do? 

Mr. BIERMAN. Thank you very much, Congressman, and I appreciate the opportunity to answer your question. I also would just 

state, quickly, that we will remain available to answer questions 

after this through the QFRs and also to meet with you personally 

to go over every single one of your questions that we might not 

have time for today. 

Over the last 8 months, I have made a high priority of coming 

up to Congress and meeting with members and their staffs to answer these very important questions. 

But let me just say that I think that the President’s request does 

give us the resources we need to accomplish our goals. I would also 

suggest to you that we’ve been very strategic in our efforts and 

we’ve been very focused, putting together a strategic framework in 

terms of countering Kremlin influence, and we are specifically 

going after those areas that are of most need with both of our host 

countries and also the region. 

34

Finally, I would also suggest to you that we are working with our 

European counterparts to be more collaborative and strategic in 

our work. We are working with the private sector in terms of bringing more resources to the table and we are also working—and I 

think this is important—with diaspora. 

I have made it a personal priority to make sure that I meet with 

diaspora and I talk to them about how we can bring additional resources to the table to help solve some of the issues that we are 

facing. 

And, finally, I just wanted to let you know that in Europe and 

Eurasia we are not closing any missions. We are looking at a country office in Albania where we are looking at the relationship as 

it currently stands. 

But there is no plans right now to close any of our missions or 

country offices and we will be happy to work with Congress to—

as we—consult with Congress as we reassess our host countries’ 

path to their self-reliance. 

Mr. MEEKS. So let me just ask this then, because what I am trying to make sure that maybe then we don’t need to make the errors 

of the past. Are you saying to me that this money that you had previously you were over funded in the past? 

Mr. BIERMAN. I would say that we are utilizing the resources 

from Congress in a very strategic and positive manner. 

Mr. MEEKS. Right. So you’re just doing what you have to do because that’s all the money you’re going to get if this budget is enacted. Is that correct? 

Mr. BIERMAN. I think we are being much more strategic in our 

focus and we are also being more effective——

Mr. MEEKS. So then we should have been more strategic in the 

past. We didn’t need to give you—didn’t need to give the money. 

Because I want to make sure we don’t do that. If you didn’t need 

the money before and, you know, and we are just going to accept 

that the budget is—the budget is—will get cut and there’s no advocacy, because in the past when I was in these hearings, no matter 

who the President was, whether it was Obama or Bush, the urge 

was to fight for as many—as much dollars to create and have the 

kind of programs that are necessary on the ground which would 

benefit the interests of the American people. 

Now, if I am hearing now that there has been a concrete examination of the funds that was received in the past within the agency—and I know I am putting you on the spot so I am not going to 

let you—I am not going to—I am not going to do that to you. I am 

not even going to ask you to answer the question. Okay. I am not 

going to ask you to answer the question. 

But I just want you to know that I appreciate very much the 

work that USAID has been doing on behalf of the American people 

and I think that in your statement, you know, you indicated that 

there has been progress. 

But there are several countries that are still under the threat of 

Russia influence and some of that is increasing. Is that correct? It 

hasn’t decreased. It’s still there. 

Mr. BIERMAN. No, it is creating a clear choice between 

authoritarianism and open democracy. 

35

Mr. MEEKS. And Ms. Yastishock, the State Department, it’s the 

same issue—I mean, the same questions. I mean, the work that 

you do is valuable to the American people and make a difference 

on the ground to people—to the American citizens. 

So they’ve been getting—because when I look at what our foreign 

aid is over our overall budget, it’s less than 1 percent. 

So the American people have been getting a good value out of 

their dollar investing in our State Department and USAID and the 

regions that we are talking about now, whether it’s Europe or Central Asia. The American people haven’t been shortchanged by the 

money that we’ve been giving to the State Department, have they? 

Ms. YASTISHOCK. I am with USAID so I will defer——

Mr. MEEKS. USAID. Okay. I am sorry. 

Ms. YASTISHOCK [continuing]. To my State colleague. 

Mr. MEEKS. Who’s here from the State Department? Ms. Wynne 

and Ms. Puma. I am sorry. 

Ms. WYNNE. I will answer the question first. Thank you, Ranking 

Member Meeks. 

First, before I answer the question, I want to say thank you to 

the Members of Congress for the generous support that you have 

provided both the career members of the service and the department and USAID in supporting the foreign policy objectives for our 

region. 

I guess I would answer your question in the following way. We 

recognize that as we sit here we understand that the budget resources to support our foreign policy objectives are just one part of 

the greater whole and that you have a very tough job in balancing 

the priorities for our foreign policy objectives against domestic policy objectives and the very real deficits that face us. 

So the President’s request for fiscal year 2019 is a request of fiscal restraint. Within that request—and I think this is what Brock 

was trying to get at—is that we are trying to be very strategic 

within this request. 

We are trying to be very responsible in making sure that the resources that we have are being put toward our highest priorities 

and for us, within the State Department and USAID, for Europe 

and Eurasia, that priority is focussing on those states that are on 

the front lines of Russian aggression—Ukraine, Georgia, and 

Moldova, where there are Russian boots on the ground—and also 

more vulnerable areas in the Western Balkans, which are also susceptible to malign influence. 

Within that, we are also being strategic about the types of assistance and engagement and interventions that we are using so that 

we are focussing on those levers and influences that are our biggest 

challenge. 

First and foremost, supporting our partners and allies in 

strengthening their cyberdefenses, especially as it relates to their 

election systems; supporting local efforts to counter disinformation, 

which serves to discredit our democracies and sow division within 

the West; focussing on the fight against corruption, which really is 

the door to malign influence from Russia but also increasingly from 

China; and finally, supporting our European partners as they 

strengthen their energy security. 

Again, with the resources that we have, we want to be strategic. 

36

Mr. MEEKS. One thing that I know—I’ve gone over my time—but 

so what will you now not focus on? 

Ms. WYNNE. So we are focusing—what we are not focussing on 

are those areas——

Mr. MEEKS. Right, these—go ahead. 

Ms. WYNNE. Thank you. So we’ll not be focussing on those areas 

that don’t align with those goals. So, again, prioritizing where the 

threat is the greatest in those areas where the vulnerabilities are 

greatest and, finally, working in partnership with our European donors and even with the private sector to make sure that we are 

leveraging as much of the outside resources as we can to address 

these threats. 

Mr. MEEKS. Right. I will just close with saying that I know that 

if you’re reprioritizing there’s something that you have got to leave 

out and I—from, you know, prior testimony under various administrations, you know, they talk about the work that they did. All of 

it was substantial. And now you have to make choices and so a lot 

of things have to be left out. 

And when I see where these dollars are going, it’s not like the 

dollars are going into a savings account. The dollars are going into 

the military. That’s where it’s going. 

And so it just seems to me then we are reshifting completely 

from the diplomatic side or cutting the diplomatic side into just the 

military side, causing a imbalance that we once were trying to fix, 

because from the generals that I’ve talked to they say we need 

both, and any—I mean, one general—the favourite quote: The cuts 

that we take away from diplomacy we got to add it for bullets. 

And that’s just my point. I yield back. 

Mr. ROHRABACHER. Well, thank you, Mr. Meeks. 

I have a few questions of my own. But let me note that we are 

spending $833 billion more this year than we are taking in. 

So every cent we spend overseas is being paid for by our grandchildren——

Mr. MEEKS. You passed a tax cut. 

Mr. ROHRABACHER. The tax cut—is that probably going to——

Mr. MEEKS. A lot of money there. 

Mr. ROHRABACHER [continuing]. May end up with actually more 

revenue because the level of economic activity here will be increased, as——

Mr. MEEKS. I am sorry. 

Mr. ROHRABACHER. It’s okay. 

Let me just note that that type of deficit spending has to be dealt 

with in some way and one way will be to increase the productivity 

of our economy. 

The other way will have to be trying to make sure that we have 

a greater sense of responsibility in every dollar that’s being spent, 

especially outside of our country, especially for, hopefully, the benefit of other countries. That is a mutual benefit to us. 

I understand your argument that helping other people is a benefit to us and would create stability, et cetera. But should we actually be financing—well, first of all, let me ask about the crops in 

Ukraine. 

Who was it who mentioned that we have doubled certain crops 

in Ukraine? Was it you, Mr. Bierman, or——

37

Ms. YASTISHOCK. I thought it was Tajikistan, doubling the fruit 

crops. 

Mr. ROHRABACHER. All right. Yeah, I—could you go into that detail a little bit for that? What crops were doubled and how did we 

do that? And——

Ms. YASTISHOCK. Actually, I believe it is in Uzbekistan where we 

have been working——

Mr. ROHRABACHER. Yes, that’s Uzbekistan. 

Ms. YASTISHOCK. Uzbekistan. We’ve been working with the private sector as well as the local farmers on increasing the horticulture. 

Mr. ROHRABACHER. How did—how did we do that? 

Ms. YASTISHOCK. Through a contract and through a contractor, 

and then we actually helped with leveraging private sector investment to connect them to California to bring in the walnut saplings. 

Mr. ROHRABACHER. So was—did we send—was it an American 

company we contracted with to go there and help their farmers 

produce more of their product? Is that what happened? 

Ms. YASTISHOCK. We did. We brought in American experts and 

farmers to be able to increase the yields and the horticulture sector. 

Mr. ROHRABACHER. Do you know what crops those were? 

Ms. YASTISHOCK. They were walnut saplings from the United 

States. 

Mr. ROHRABACHER. Walnuts? 

Ms. YASTISHOCK. Walnuts. 

Mr. ROHRABACHER. Okay. 

Ms. YASTISHOCK. That were brought in from California. 

Mr. ROHRABACHER. All right. That’s interesting. We have—and 

how much did it cost us to double the walnut production in 

Uzbekistan? 

Ms. YASTISHOCK. That’s a number I would have to get back to 

you on, Mr. Chairman. I am not exactly sure. 

Mr. ROHRABACHER. I certainly don’t expect you to have that off 

the top of your head. But if you could get back to me that would 

be very nice. 

Ms. YASTISHOCK. Sure. 

Mr. ROHRABACHER. I guess what we need to know is every time 

we have an expenditure, whether it’s to increase the walnuts in 

Uzbekistan or whatever it is, we need to now show in the age that 

we are in exactly how this is going to have an impact—positive impact on the United States because we are borrowing that money 

from our grandchildren, and that—of course Uzbekistan is a vitally 

important country. 

There’s no doubt about it. If—I think one of the most important 

things that we have to deal with—one of the most vital things is 

stability of Central Asia in the sense that if Central Asia stays stable from the expansion of radical Islam the whole world will be better off, especially the Western world will be better off. 

If, indeed, radical Islam permeates into Central Asia, the instability that that creates would be incredibly damaging to the stability of the entire planet. 

38

So there is an importance there and maybe walnut production in 

Uzbekistan may be part of that. But we have to make sure that 

we can argue that case and that we know about that. 

Now, what about the money that we are spending in governments that are democratically elected and, like in Hungary, and 

yet we are spending certain amounts of money for what we call reformist groups that are involved with their democratic process? 

Is this something that we should—can still afford to do? I mean, 

we have already a democratically elected government and we go in 

and are supporting various people who are pushing for various—

what we consider to be fundamental aspects of our society but 

maybe not necessarily fundamental to their culture. 

And can we still afford to do that and why should we do that if 

they already have a democratically elected government? 

Anybody want to answer that? 

Ms. Wynne. 

Ms. WYNNE. Thank you, Chairman. I will try to answer that as 

best I can. 

Mr. ROHRABACHER. Talk a little louder so we can all hear you. 

Ms. WYNNE. Sorry. I will try to answer that as best I can. 

You know, we share with our NATO allies and EU member 

states, including Hungary, some enduring principles and shared 

values, and we expect our allies and partners to uphold them. 

Part of what the source of American strength is is that wherever 

we are throughout the globe we stand for fundamental freedoms 

and democratic principles. 

We’ll continue to engage these governments on these issues both 

privately and publicly when necessary. We’ll also look to engage societies in ways that we can to be helpful, to support, those fundamental values and principles. 

Mr. ROHRABACHER. Well, if they have a democratically elected 

government, isn’t it quite insulting for us to go in and say, here’s 

how we define it and we expect you—I mean, the people have freedom of speech there, whether it’s Hungary or these other—some 

other countries like Poland that have come under attack. 

Isn’t it somewhat presumptuous of us to go in and then to actually take more of that—spend more of that $833 billion that we are 

spending in deficit to go in to try to help them—push them in certain directions, even though they already have a democratically 

elected government? 

Ms. WYNNE. So the second part of my answer, sir—and I appreciate your question—was going to refer to the importance of local 

context and that really does matter, especially if you look at the 

space in Europe right now where we are facing increasing competition—strategic competition from Russia and China. 

The manner in which we go about upholding our shared values 

and principles is important. We don’t want to ease the space for 

Russian influence and Chinese influence. 

We know that Russian disinformation is purporting narratives 

that are intended to undermine our democracies. So the way in 

which we go about engaging these governments and supporting 

these efforts we want to both be effective. But we also don’t want 

to be seen as inadvertently criticizing——

39

Mr. ROHRABACHER. Well, maybe the—maybe the people—maybe 

the people of these countries—for example, Hungary or elsewhere, 

when they see us getting involved with trying to push various policies and issues with the NGOs, et cetera, in their country, maybe 

they see it as the same kind of interference that they don’t like 

from Russia. 

Ms. WYNNE. We certainly need to be careful as we go about supporting these fundamental—these fundamental values—these fundamental principles. 

We need to be careful that our efforts aren’t inadvertently exploited or mischaracterized as an attempt to criticise the democratically-elected government of a NATO ally or we are neither upholding our values or achieving our fundamental national security objectives. 

Mr. ROHRABACHER. All right. 

And, you know—I will take a little extra time, too. So the——

Mr. BIERMAN. And I—if I could just chime in, Mr. Chairman. 

Mr. ROHRABACHER. Please go right ahead, Mr. Bierman. Yes. 

Mr. BIERMAN. I would also say that these countries are asking 

for our help in terms of building their democracy and transparency. 

They are actually coming to us and asking for assistance with 

transparent elections. 

Mr. ROHRABACHER. That’s true. Yes. 

Mr. BIERMAN. And I would also just add that this is a matter of 

sharing a perspective rather than dictating a policy. 

Mr. ROHRABACHER. Somewhere between Uzbekistan and Hungary there is a—you know, one is basically a very sophisticated 

country—Hungary and Poland and those countries—versus 

Uzbekistan and Tajikistan, which are really developing countries. 

So there’s a line somewhere there for the point that you made 

of where it becomes interference and where they’re actually asking 

for help and where they’re helping and in terms of values and such, 

especially disturbing is the fact that we’ve had so much corruption 

in various countries that we’ve helped. 

I mean, Ukraine, we’ve spent $1 billion in Ukraine, I guess, in 

the last couple years and everybody acknowledges the level of corruption there is just dramatic. 

Mr. BIERMAN. I would just add that we’ve seen more movement 

to defeat corruption in the last 4 years than we’ve seen in the last 

20 years. They’ve just stood up a high level anti-corruption court 

and USAID is helping them stand up that court. 

We’ve seen a number of programs that help create transparency 

with our ProZorro program. I visited the East where we actually 

have created these service centers where people can come in and 

receive valuable services from their local governments that helps 

them be more proactive and more responsive. 

Mr. ROHRABACHER. Well, I will say that at that level I hope that 

they are having—experiencing less corruption. But from what I’ve 

been told personally by various groups from Ukraine that at the 

highest level corruption is worse than it’s ever been and that’s—

I can’t verify that but that’s what political groups from that country—whereas we are the committee that oversees our relations 

with Ukraine—they come to us and they talk to us. 

40

With one last point, let us just note that sometimes when you 

have certain amount of money you’re going to spend and now we 

have to be much more cautious with it, spending the money doesn’t 

necessarily bring about the right end. 

I remember, like, one of the things when I first got here was the 

Clinton administration’s insistence on spending what was the 

equivalent of $50 million providing fuel for North Korea, and it had 

just the opposite impact. 

I mean, the North Koreans thought we were fools for doing that 

and did not make peace more likely. It made it less likely, and this 

President, with all of his abrasiveness and all of the way that he 

gets people angry at him, calling the guy ‘‘Rocket Man’’ and things 

like that, we have made tremendous strides forward at least getting the dialogue going to see if we can improve our relations as 

compared to what that $50 million got us, which was a retrenchment of tyranny and threat from North Korea. 

So with that said, one last point and then Brad, you can take 

over. And Brad loves to refute me but that’s okay—you can do that. 

I think that this administration—I think what’s fascinating—I 

want to go on the record on this, fellas, and that is we have left 

more career Foreign Services officers in charge of the State Department than any other administration that I’ve been through in the 

last 30 years. 

So we’ve actually got the pros like that are with us today. 

They’re all pros, and with that said, that’s one thing that you got 

to take into consideration. 

Thank you all very much and, Mr. Sherman. 

Mr. SHERMAN. On that last point, I have urged the prior Secretary of State and the current Secretary of State when they have 

good people who happen to be career, give them the permanent 

title. 

I believe we have at least one acting DAS here and as good as 

the people are, you can’t do a good job until they tell you it’s your 

job, and I remember the former Secretary of State saying well, 

yeah, we haven’t filled all these positions because we’ve got great 

people filling them temporarily. Permanent is better. 

As to the issue of if a country is democratic we shouldn’t criticise 

them, I think that we deal with both democracy and human rights, 

minority rights, the rule of law, and we need to—just because a 

country is elected does not mean it’s respecting minority rights. 

That being said, I am concerned at the great popularity in the 

American press of any color revolution anywhere in Eurasia—we 

are running out of colors—when it’s an attempt to displace a democratically-elected government, the U.S. press tends to focus on well, 

if people—if a majority of the people in the capital city who are 

English speaking and secular are against the government, then obviously it’s undemocratic for that government to continue. And the 

fact is that many of these countries have people who don’t live in 

the capital city and who don’t speak English whose votes ought to 

be given equal weight. 

As to the anti-corruption effort, it’s good to see that Ukraine has 

one. I would point out China has also had a huge anti-corruption 

effort, which is basically an attempt by President Xi to go after his 

41

enemies, and just because a country is doing a lot in anti-corruption does not mean it’s primarily an anti-corruption campaign. 

I want to associate myself with the ranking member’s statements 

and arguments that we should be spending more on foreign aid but 

point out that we should also be pushing Europe to do so as well. 

Now, as a percentage of GDP they spend more on foreign aid 

than we do. But we provide the security that they don’t provide, 

as proven even in Europe where that could not be handled by European military. Kosovo and Bosnia was handled by the U.S. military. 

As part of our effort to point out that Europe should be spending 

more on its international obligations, we deliberately undercut that 

by understating the portion of our GDP that we spend on the military. 

We spend far more than 4 percent of our GDP and then we hide 

that from the American people by saying don’t include our intelligence operations as part of what we spend on national defense 

and don’t include VA benefits as part of what we spend on national 

defense. 

If any private company excluded from its expenses of product created the pensions that they are going to provide or obligated to provide or the pension benefits that they’re going to provide their 

workers and they didn’t list that as one of their expenses, their accountants would go to jail. 

So we should not be understating what we spend to fool the 

American people when that undercuts our efforts to get Europe to 

spend more. 

I heard a number of the witnesses talk about trade facilitation 

and the good of expanding trade. Often, U.S. companies will come 

to you and say, go spend money on this—it’s trade facilitation and 

it’s supply network improvement. 

What they’re really saying is go spend money so that we can ship 

jobs overseas and our offshoring will be effective. Is there any regulation at USAID that says that you have to look as to whether a 

particular project will facilitate offshoring of American jobs? 

Mr. BIERMAN. I can’t answer that but I am happy to get back to 

you with it. 

Mr. SHERMAN. Okay. So this is a program—let’s put it this—it’s 

not a regular—you’re the one running the program and you’re not 

of any—you don’t, at least knowingly, carry out a policy preventing 

your program to lead to offshoring of jobs? 

Mr. BIERMAN. Oh, absolutely. In fact, I was just going to mention——

Mr. SHERMAN. But, I mean, it’s on your checklist. If a project 

comes in and the effect is to allow shoes that are made in the 

United States to be efficiently made in some other country you 

don’t fund the program? 

Mr. BIERMAN. There is no regulation. 

Mr. SHERMAN. There is no regulation. Is it a policy of yours? So 

it’s not a—you do not have a policy against funding shipping American jobs overseas? 

If a project is going to lead to shutting down an American factory, you don’t have a policy that says that’s a bad idea? 

42

Mr. BIERMAN. No. In fact, I would just say that we are actually 

exploiting opportunities for American businesses overseas through 

our programs. We are seeing the opposite. 

Mr. SHERMAN. Okay. When an American business wants you to 

help exploit the opportunity to close down an American factory and 

make more money by producing the product overseas, what do you 

do? 

Mr. BIERMAN. Well, first off, let me just—let me give you a prime 

example where we are working with a rural company in rural 

Oklahoma where we’ve actually seen an increase in working——

Mr. SHERMAN. I know there are going to be times when your 

projects lead to increased American employment. 

I am asking you a specific question. Do your policies and procedures—so when we fund your agency we may very well on occasion 

be funding a program that makes profits for a great American company by shutting down an American factory and facilitating—and 

doing trade facilitation that helps ship those jobs overseas? 

Mr. BIERMAN. As far as I am concerned, everything that we are 

doing is actually a benefit of both American——

Mr. SHERMAN. But you don’t ever—in looking at a project you 

don’t have on your checklist, does this lead to shutting down an 

American factory? 

Mr. BIERMAN. I can’t give you an example where that has been 

the case. 

Mr. SHERMAN. Well, on the one hand—yeah, but you’re not—

okay. 

So you would need legislation—we’d have to tell you through legislation not—you know, to notice whether it leads to shutting down 

an American factory? 

I will ask one of the other witnesses. Are you aware of any State 

Department policy that says that we are not in favor of trade facilitation projects that increase American corporate profits but decrease American jobs? 

Ms. WYNNE. I am not aware of any such stated policy, sir. I think 

the goal of——

Mr. SHERMAN. Well, shouldn’t we have one? I mean, you’re asking us to go back—we’ve got this debate between the chairman and 

the ranking member—you’re asking us to go back to our districts 

and say spend money on aid and you don’t happen to notice whether you’re funding something that’s going to shut down American 

jobs? 

Mr. BIERMAN. I would say it’s just the opposite. 

Mr. SHERMAN. But do you have it as part of your—I know that 

you can point to examples where perchance it worked out well. But 

do you have a written policy against funding a project that you 

might not—that would displace American jobs? 

Ms. WYNNE. When we fund particular projects or particular sectors, sir, we are not looking at the interests of one particular or 

specific company. 

Our focus is on, typically, improving the environment overseas so 

that our firms can compete. 

Mr. SHERMAN. But are you noticing whether—while hoping that 

your project might increase jobs a—that a project might displace an 

American factory? Close it down? 

43

Ms. WYNNE. No. I think what Mr. Bierman is trying to say we 

are in fact noticing the opposite. Our projects are actually doing the 

opposite. 

Mr. SHERMAN. I know—do you have—let’s say you get 10 projects 

and nine of them increase American jobs and you come here and 

brag about that. 

Would you happen to notice that maybe the tenth project led to 

shutting down an American factory? Do you have a rule against 

funding that tenth project—the one that would shut down? 

I know—other than coming here and bragging about the nine 

that increased, do you have a policy against funding the project 

that would lead to closing an American factory? 

Ms. WYNNE. I don’t know. 

Mr. SHERMAN. Nothing you can point to? 

Mr. BIERMAN. Hypothetical, but we’ve never——

Mr. SHERMAN. Well, you don’t look for it. If it’s not part of your 

job to notice whether you’re going to shut down an American factory, I don’t expect the foreign government to send you a memo at 

their expense saying, don’t fund this project in our country because 

it moves jobs from America to Uzbekistan. 

It’s not Uzbekistan’s job to protect American jobs, and you won’t 

know what you’re doing if you don’t look and you don’t have it on 

your written checklist to look. 

So I hope that when you come back next year you will say yes, 

we’ve got a 17-point or 170 points that we look at when we fund 

a project and one of them is we are not shutting down an American 

factory. 

So come back next year and show it to me. It may be number 

169 on the list. But don’t tell me to go back to my district and 

agree with Mr. Meeks and disagree with Mr. Rohrabacher and try 

to provide more funds for your agency if you won’t include this as 

one of your 170 top concerns. 

Now let me go to things far less controversial, although I have 

gone on pretty long. 

Mr. MEEKS. Yes, you have. 

Mr. SHERMAN. I am closing in on the amount done by the chairman. I will sneak in one question if you will let me. 

Mr. ROHRABACHER. The answer is yes. But I want to note that 

the way I handle this as chairman I usually let people finish their 

train of thought and you go right ahead. 

Mr. SHERMAN. Okay. 

Mr. ROHRABACHER. Just as long as when you’re the chairman I 

am going to get that same type of treatment. [Laughter.] 

Mr. SHERMAN. Yes. Yes. Yes. You’re right. Usually the chairman 

gets a little bit more. 

Mr. Bierman, we’ve talked here about saving lives. One of your 

programs that does save lives is the de-mining effort in Artsakh. 

What are your views on expanding this critical investment in peace 

by finalizing the HALO Trust’s mine clearance funding? 

Mr. BIERMAN. Well, first off, thank you for that question, Congressman. Let me just say for the record we’ve spent $43 million in humanitarian assistance for victims of Nagorno-Karabakh over the last—

well, since 1998—over the last 20 years. 

44

We are right now at about 97.6 percent completed the mission 

of de-mining in that particular area and more than a 125,000 people have benefited from the de-mining. 

This has saved lives and prevents injuries and generates local 

jobs. So we continue to support that. 

We will continue to look at humanitarian assistance in that particular region as it—as it arises. 

Mr. SHERMAN. In a QFR I am going to be asking you to urge the 

Department of Treasury to conclude a tax treaty with Armenia that 

will help achieve your goals and actually make money for the IRS 

rather than cost money, which everything else does. 

And I will yield back. 

Mr. BIERMAN. And I would just—one last additional point would 

be that I have met with the Armenian diaspora and we have made 

a point of reaching out to them and talking about partnerships and 

benefiting not only Armenia but the region. 

Mr. SHERMAN. Thank you. 

Mr. ROHRABACHER. We have exactly 5 minutes before the next 

vote is called. So as a matter of self-interest as well as courtesy, 

I am going to have Mr. Meeks say his closing remarks and then 

I will close the hearing. 

Mr. MEEKS. And I will be brief. 

I just want to thank the four of you for your service and dedication to our great country and to everybody that works in the State 

Department and USAID. 

I’ve got to tell you, when I travel on this committee and I go almost any place in the world, first, you know, many times I go and 

I see our military, our young women and men that’s in our United 

States military, I am so proud of them and what they do and what 

they stand for and how they do their jobs on an everyday basis. 

And I’ve got to tell you I am as equally proud of the women and 

men in the State Department and at USAID. 

I see them working tirelessly on behalf of our country, working 

together to make sure that we have a better world. They are dedicated to this great country of ours and for a better world, and I 

want to make sure that they know that they are truly appreciated 

by members of the United States Congress. 

So thank you and thank them for their service. 

Mr. ROHRABACHER. Good summary, wasn’t it. That was terrific. 

All right. Well, let’s just know that almost every Member of Congress that I know agrees with that assessment. 

We may be—come across as being too much having green eyeshades and giving people problems over specifics and trying to 

make do with the budget that we’ve got without leaving all of this 

legacy of debt to our grandchildren. 

But we know that you’re the—you know, they’re the front line 

and you’re the one who are putting out all the work and policy. 

Dictating policy is a lot harder than carrying it out most of the 

time. So we do appreciate that. 

Let me just note that I think that we do—there are some fundamental differences that separate us and I will have to say that 

some I don’t believe and that we should be in other countries pushing them on policies and philosophies that are, yes, consistent with 

our values but if it’s a democratically-elected government they can 

45

get those values and they can get those decisions from their own 

people rather than from people who have a culture, like we have 

in California—totally different culture than what’s going on in 

some of the countries like Uzbekistan or Tajikistan or wherever. 

They have a totally different culture than we do, and for us to 

be pushing—and even in Hungary, even when we push—so we are 

pushing for people to accept as part of our NGO program to do 

this—that, I think, is not only a waste of money but it will create 

antagonism for us. 

Helping out to make sure that we help the walnut farmers in 

Uzbekistan and if we do I think that we can—probably they will 

be grateful to us for doing that rather than telling us what—rather 

than saying okay, we will agree to your position on gay marriage, 

okay, and I am just saying that’s the type of thing that we should 

not be pushing as U.S. policy but respecting their culture in that 

way. 

Otherwise, I think they’re going to end up disliking us the same 

way that people dislike Russia, especially during the Soviet era, 

when they came in and tried to perpetuate their socialist values on 

everybody. 

So with that said, I am optimistic and I think we are in line for 

a better world. I think that technology—your jobs are going to be 

easier now because technology and especially communications technology that we are able now to have an influence in another country and, for example, I am on the Science Committee and there’s 

a company, Virgin Galactic, that’s just getting into what you call 

suborbital space. 

Well, that means we will be able to go to Kazakhstan or 

Uzbekistan in an hour from here. Ten years from now that will 

be—there will an airline doing that and Virgin Galactic will be offering that service. 

This is going to be a—have a tremendous impact on the world 

and I hope that it will be a positive influence, and we do owe people mine clearing and I was very happy that that was brought up 

because we have—in our history we have done things to preserve 

our own security that we need to detail—we need to focus on. 

Mine clearing is one of them. People in Laos, people in Vietnam—they still have kids who are going out and they are being—

you know, their legs are blown off or their hands are being blown 

off. 

We need to—to me, that is the most justified of all expenditures 

of foreign aid because we are rectifying something we created ourselves. 

And with that said, just—and just improving their economy with 

walnuts I don’t think is enough. But making sure that we help correct—for example, we need to work with people on banking systems that are transparent. 

I mean, the corruption that I noted in Ukraine, that’s all over the 

place. What you have got is a—bankers are now quite often just 

accomplices to public officials who were looting their own countries 

and that’s not right. 

And we can—that’s one type of a project that would cost a lot of 

money for us—a lot of time and expertise to try to help people deVerDate 0ct 09 2002 14:26 Oct 31, 2018 Jkt 000000 PO 00000 Frm 00049 Fmt 6633 Sfmt 6633 Z:\WORK\_EEET\092718\32307 SHIRL
46

velop banking systems that will protect their own people from that 

kind of looting. 

Those are the type of projects that I think we need more of and 

less of the more traditional things that USAID has been doing for 

the last 50 years. Maybe we are in a new phase, and I think we 

are, and we are depending on you to get the job done. 

And thank you for your guidance as we are trying to make the 

policies of this new phase. 

So with that said, this subcommittee is adjourned. 

[Whereupon, at 3:34 p.m., the committee was adjourned.] 

(47)

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MATERIAL SUBMITTED FOR THE RECORD

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32307n.eps

SUBCOMMITTEE HEARING NOTICE 

COMMITTEE ON FOREIGN AFFAIRS 

U.S. HOUSE OF REPRESENTATIVES 

WASHINGTON, DC 20515-6128 

Subcommittee on Europe, Eurasia, and Emerging Threats 

Dana Rohrabacher (R-CA), Chairman 

September 20,2018 

TO: MEMBERS OF THE COMMITTEE ON FOREIGN AFFAIRS 

You are respectfully requested to attend an OPEN hearing of the Committee on Foreign Affairs to 

be held by the Subcommittee on Europe, Eurasia, and Emerging Threats in Room 2200 of the Rayburn 

House Office Building (and available live on the Committee website at 

http://www .F oreignAffairs.house. gov): 

DATE: 

TIME: 

SUBJECT: 

WITNESSES: 

Thursday, September 27,2018 

2:00p.m. 

Europe and Eurasia: Ensuring Resources Match Objectives 

The Honorable Brock Bierman 

Assistant Administrator 

Bureau for Europe and Eurasia 

U.S. Agency for Intemational Development 

Ms. Janinc Wynne 

Acting Coordinator 

Office of the Coordinator of U.S. Assistance to Europe and Eurasia 

U.S. Deprutment of State 

Ms. Emilia Puma 

Acting Deputy Assistant Secretary 

Bureau of South and Central Asian Affairs 

U.S. Department of State 

Ms. Ann Marie Yastishock 

Deputy Assistant Administrator 

Bureau for Asia 

U.S. Agency for International Development 

By Direction of the Chairman 

The Committee on Foreign Affitirs seeks to make tfsjacilities accessible to persons with disabili!ies. If you are in need of special accommodations, 

please call 2021225-5021 at lea.\·( four business days in advance of the event, whenever practicable. Questions with regard to :o,pecial 

accommodations in general (including availability of Committee materials in alternative formats and assisttve listening devices) may be directed 

to the Committee. 
49

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32307m.eps

COMMITTEE ON FOREIGN AFFAIRS 

MlNUTES OF SUBCOMMITTEE ON _____ E_'_"__,op:_e:_, E_,_u_·as_ia_&_E_m_e..::rg'--ln::.g_T:_1,_re_at_• _____ HEARING 

Day _ __::.I:cc'h.:.:cu:..:rs"'d""ay'----_Date September 27, 2018 Room _ _:R:oa:OJ!Y:..:bc:;u:.:.rn"--=2"'2-'-00'-----

Starting Time 2:14pm Ending Time 3:34pm 

Recesses [li/~-] (_to_) (_to __ ) (_to __ ) (_to __ ) (_to __ ) (_to_) 

Presiding Member(s) 

Chairman Dana Roltrabacher 

Check all ofthefollmving that apply: 

Open Session [Z] 

Executive ~sed) Session D Televised U 

TITLE OF HEARING: 

Electronically RccordmJtaped) I:Zl 

Stenographic Record lL.I 

Europe and Eurasia: Ensuring Resources Match Objectives 

SUBCOMMITTEE MEMBERS PRESENT: 

Chairman Rohrabacher, Ranking Member Meekv, Rep. Sherman, and Rep. Kelly. 

NON-SUBCOMMITTEE MEMBERS PRESENT: (Mark with an * if they are not members ofjull committee.) 

None 

HEARING WITNESSES: Same as meeting notice attached? Yes [ZJ No 0 

(If "no", please list below and include title, agency, department, or organization.) 

STATEMENTS FOR THE RECORD: (List any statements submitted for the record.) 

Written Statement by Brock Bierman 

Written Statement by Junine Wynne 

Written Statement by Emilia Puma 

Written Statement by Ann Marie Yastishock 

TIME SCHEDULED TO RECONVENE ___ _ 

or 

TIME ADJOURNED __ 3_:._'14_,pc._m_