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In September 1989, the Bush Administration inaugurated a broad-based counternarcotics strategy. One component of that strategy, the so-called Andean Initiative, was intended to stem the flow of cocaine into the United States by reducing production and trafficking in Colombia, Peru, and Bolivia. As submitted in 1989 and revised in later years, the initiative called for substantial increases in narcotics-related funding for the three countries.

The Clinton Administration is^ reviewing the size and effectiveness of the U.S. counternarcotics strategy, including funding for programs to combat illegal drugs in Colombia, Peru, and Bolivia. (President Clinton submitted the 1994 publication of the National Drug Control Strategy to the Congress in February 1994. Although this report contains references to that strategy, including an appendix with budget information, the Congressional Budget Office (CBO) has not fully analyzed or applied its contents to the text of this report.) Moreover, the Congress has expressed concerns about the efficacy and future of the Andean Initiative and has placed a moratorium on certain types of economic and military assistance appropriated for the initiative under the Foreign Operations, Export Financing, and Related Programs Appropriations Act of 1994. As this report is being printed, the Administration and the Congress are working to alleviate those concerns and end the moratorium.

This paper was requested by the House Committee on Foreign Affairs to provide a clear and consistent measure of past funding on which to base future policy decisions. Using data provided by key executive branch departments and agencies, this report documents the funding and other resources used to support the Andean Initiative over the 1990-1992 period, along with estimates of support for 1993 and 1994. In so doing, CBO finds a significant gap between the funding suggested by the Bush Administration and the funding and other resources obligated during the 1990-1994 period.

Victoria A. Greenfield of CBO's Natural Resources and Commerce Division wrote the report under the supervision of Jan Paul Acton and Elliot Schwartz. Melissa L. Sampson of CBO's Tax Analysis Division provided budget estimates for the Andean Trade Preference Act. Stephen M. Celio, Kent R. Christensen, Michael O'Hanlon, and Joseph C. Whitehill, also of CBO, offered useful comments and suggestions. The author wishes to thank Raphael F. Perl of the Congressional Research Service for his helpful insights. A draft of this paper was circulated for comment and verification to each of the departments and agencies that provided data.

Sherwood Kohn edited the manuscript, and Christian Spoor provided editorial assistance. Aaron Zeisler produced the figures. Donna Wood produced the tables, and she and Angela Z. McCollough prepared the paper for publication.
 

Robert D. Reischauer
Director
March 1994
 
 

SUMMARY

INTRODUCTION

THE OBJECTIVES OF THE ANDEAN INITIATIVE AND PROPOSED LEVELS OF FUNDING

• The Bush Administration's Drug Control Strategy and Subsequent Legislation
• The Objectives of the Andean Initiative
• Did the Bush Administration Call for Additional Funding for the Andean Region?

ACTUAL AND ESTIMATED SUPPORT FOR THE ANDEAN INITIATIVE: OBLIGATIONS, NONCASH ASSETS, AND TARIFF REDUCTIONS

• Overall Funding and Other Resources
• Funding and Other Resources by Country
• Funding and Other Resources by Category of Assistance

CONCLUSIONS

APPENDIXES

A - The Clinton Adminstration's Drug Control Strategy
B - Programs, Projects, and Operations Supporting the Andean Initiative
 

TABLES
1.	Support for the Andean Initiative: A Summary of Actual and Estimated Levels of Funding for Military and Economic Assistance, Law Enforcement, and Drug Enforcement Administration Activities, and Other Resources
2.	Economic Assistance in Support of the Andean Initiative: An Annotated Breakdown of Actual and Estimated Levels of Funding for Development Assistance and the Economic Support Fund
3.	Law Enforcement in Support of the Andean Initiative: An Annotated Breakdown of Actual and Estimated Levels of Funding for the Country Programs of the Bureau of International Narcotics Matters
4.	Drug Enforcement Administration Activities in Support of the Andean Initiative: An Annotated Breakdown of Actual and Estimated Levels of Funding for Foreign Offices and Operation Snowcap
5.	Noncash Assets Provided in Support of the Andean Initiative: An Annotated Breakdown of Authorized Defense Drawdown and Reported Deliveries
6.	Noncash Assets Offered in Support of the Andean Initiative: An Annotated Breakdown of Offers to Transfer or Sell Excess Defense Articles
A-l.	Bureau of International Narcotics Matters: A Summary of Resources
A-2.	Funding for Counternarcotics Activities in Colombia, Peru, and Bolivia: A Comparison of the Clinton Administration's Request for 1995 and Estimates of Obligations for 1993 and 1994
FIGURES
S-l.	Support for the Andean Initiative: The Bush Administration's Proposal for Funding Compared with Actual and Estimated Levels of Funding
1.	Support for the Andean Initiative: The Bush Administration's Proposal for Funding Compared with Actual and Estimated Levels of Funding
2.	Support for the Andean Initiative: The Bush Administration's Proposal for Funding Compared with Actual and Estimated Levels of Funding, By Country
3.	Support for the Andean Initiative: The Bush Administration's Proposal for Military Assistance Compared with Actual and Estimated Levels of Funding
4.	Support for the Andean Initiative: The Bush Administration's Proposal for Economic Assistance Compared with Actual and Estimated Levels of Funding
5.	Support for the Andean Initiative: The Bush Administration's Proposal for Law Enforcement Compared with Actual and Estimated Levels of Funding
6.	Support for the Andean Initiative: The Bush Administration's Proposal for U.S. Drug Enforcement Administration Activities Compared with Actual and Estimated Levels of Funding
BOXES
1.	Glossary of Budget Terms
2.	Funding to Support the Andean Initiative: The Bush Administration's Proposal
3.	Provisions of the Andean Trade Preference Act

 

The Andean Initiative--the Andean component of the U.S. counternarcotics strategy--was introduced by the Bush Administration in 1989 and revised in later years. It was intended to stem the flow of cocaine into the United States by reducing drug production and trafficking in Colombia, Peru, and Bolivia. In recent years, the initiative has claimed a small and declining fraction of the overall budget for the war on drugs, but the level of funding is still significant. Now, at a time when the resources of the Treasury are stretched especially thin, funding for the initiative is under review.

In 1990, the Bush Administration issued a proposal for a five-year program of "Andean Strategy Narcotics-Related Funding" to support the initiative. The proposal, which called for about $2.1 billion during the 1990-1994 period, included funding for economic and military assistance, law enforcement, and support from the U.S. Drug Enforcement Administration in Colombia, Peru, and Bolivia. Although year-to-year comparisons of funding are difficult, it is clear that the Bush Administration intended significant increases in counternarcotics funding for the three countries (see Figure S-l). Moreover, based on assessments of actual and estimated obligations for the 1990-1994 period, it is also clear that the intended increases have not and will not be met. Among the many factors contributing to the estimated shortfall are cutbacks in funding for Peru (following President Fujimori's decision to suspend the Peruvian constitution in 1992), overall cutbacks in funding for military assistance, emerging needs for economic assistance in other regions, and tightening budgetary constraints.

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