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Economic Support Fund
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($ in thousands)
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Account | FY 2005 Actual | FY 2006 Estimate | FY 2007 Request |
| ESF | 3,914,592 | 2,621,025 | 3,214,470 |
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The Economic Support Fund (ESF) supports U. S. foreign policy objectives by providing economic assistance to allies and countries in transition to democracy, supporting Middle East Pease negotiations, and financing economic stabilization programs. Key objectives include:
- Supporting strategically significant friends and allies through assistance designed to increase the role of the private sector in the economy, reduce government controls over markets, enhance job creation, and improve economic growth;
- Developing and strengthening institutions necessary for sustainable democracy. Typical areas of assistance include technical assistance to administer and monitor elections, capacity building for non-governmental organizations, judicial training, and women's participation in politics. Assistance is also provided to support the transformation of the public sector to encourage democratic development, including training to improve public administration, promote decentralization, and strengthen local governments, parliaments, independent media and non-governmental organizations.
- Strengthening the capacity to manage the human dimension of the transition to democracy and a market economy and the help sustain the neediest sectors of the population during the transition period.
In sub-Saharan Africa, $164.3 million is requested. These funds will assist countries to recover from conflict and bring about enduring peace; advance the development of democracy, including support for human rights and rule of law; promote economic stability, sustainable development, and U.S. investment opportunities in Africa; and combat terrorism and other forces that undermine prosperity and stability in the region. The request includes $60 million for Sudan to support implementation of the Comprehensive Peace Agreement to ensure a full transition to a just peace; $40 million for Liberia; $6 million for the Trans-Sahara Counter-Terrorism Initiative; and $7.3 million to support programs for the Women's Justice and Empowerment Initiative.
In East Asia and the Pacific, $167.3 million is requested to continue key bilateral and regional programs that support democracy and good governance, improve and expand education access, stimulate economic growth and development, strengthen civil society and women's empowerment, and bolster local security and counter-terrorism initiatives. Regional programs will foster cooperative solutions to transnational problems, enhance U.S. influence in regional institutions, and underscore broad U.S. engagement in the region. The request includes $80 million for Indonesia to strengthen counter-terrorism initiatives, improve the quality of basic education, promote good governance, democracy and human rights, promote economic growth and prosperity, and continue conflict mitigation and resolution efforts; $20 million to continue ongoing programs in the Philippines devoted to economic growth and reforms, good governance, and poverty alleviation, as well as attacking pervasive corruption; $13.5 million for programs in Cambodia to support improving political and economic governance and building the capacity of human rights monitoring organizations; and $13.5 million for East Timor that will support the private sector led growth through the promotion of trade and the provision of micro-credit, help establish a stable democratic polity; and to support a program to develop capacity in the health care system.
For programs to promote peace and reconciliation and contribute to the stability of Europe and Eurasia, the request is $19.5 million. Of this, $15 million is requested for Cyprus to support the peace process and eventual reunification of the island by increasing bicommunal efforts and to strengthen the Turkish Cypriot economy and economic integration of the island. Funds are also request for the Wash Visa Program ($3.5 million) that brings unemployed young men and women from Northern Ireland and the six border counties to the U.S. for employment and job training, and $1 million to support regional activities of the Organization for Security and Cooperation in Europe.
In the Near East region, $1.64 billion is requested to support regional stability in the Middle East, encourage development, and encourage a comprehensive peace agreement between Israel and its neighbors; to promote political, economic, and educational reform throughout the region; and to combat the roots of terrorism by targeting the economic despair and lack of opportunity that are exploited by extremists. The request includes $455 million for Egypt, $120 million for Israel, $245 million for Jordan, $120 million for the Middle East Partnership Initiative (MEPI), $150 million for the West Bank and Gaza, $35.5 million for Lebanon, $18 million for Morocco, and $12 million for Yemen. In addition, the request includes $478.8 million for Iraq to build on the success of the Iraq Relief and Reconstruction Fund and further support Iraq's reconstruction and transition to self reliance. The ESF will continue to sustain key Iraqi infrastructure; fund programs which focus on political and economic governance, the strengthening of democracy and civil society, private sector and agricultural development, and ensure the rule of law; and provide support for the regional Crimes Liaison Office.
For South Asia we are requesting $982.5 million to help stabilize this critical region through economic reconstruction and development, earthquake reconstruction, demobilization, democracy building, education, training and public diplomacy programs. The request includes $610 million for Afghanistan to continue U.S. support for progress toward stability, prosperity and democracy; and $350 million for Pakistan, which includes $50 million for earthquake reconstruction in support of the U.S. pledge to assist Pakistan in its recovery from that devastating natural disaster.
The ESF request includes $152.1 million to promote the Administration's objectives in the Western Hemisphere to bolster security, strengthen democratic institutions, promote prosperity, and invest in people. This request is based on a larger hemispheric commitment, defined through the Summit of the Americas process. Our Summit commitment is to democracy, free markets, economic integration, and a common policy agenda with the aim of providing the benefits of democracy to the peoples of the hemisphere. The programmatic focus will continue to be democracy (including anti-corruption), trade-led economic growth, and the fight against organized crime and terrorism. The request of $50 million for Haiti will continue support to help new Haitian authorities to consolidate democratic gains and support long-term stability and development.
In addition to regional funds, $88.5 million is requested to: promote democracy and universal human rights ($35 million); to promote environmental stewardship and advance U.S. interests in this area ($34 million); bring together individuals of different ethnic, religious, and political backgrounds from areas of civil conflict and war ($11 million); and prevent the trafficking in persons and protect the victims of trafficking ($8.5 million).
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