Foreign Operations Appropriated Assistance: Montenegro

Foreign Operations Appropriated Assistance* Fiscal Year (FY) 2007: $8.92 Million (M) ($8.50M, SEED, $0.42M Other) Estimate FY 2008: $8.63M ($7.93M, SEED, $0.70M Other)** Assistance Goals: The United States Government (USG) recognized Montenegro’s independence on June 12, 2006, and since then has aided Montenegro's rapid integration into the wider Euro-Atlantic community, including the North Atlantic Treaty Organization (NATO), the European Union (EU), and the World Trade Organization (WTO), all of which ensures that Montenegro will become a reliable partner in furthering USG policy interests in this region. The overall goal of USG assistance is to help Montenegro become a stable, democratic, and prosperous country, firmly anchored in Euro-Atlantic institutions. Areas of Focus (Foreign Operations Appropriated Assistance): Peace and Security (PS): FY 2007: $1.29M; Est. FY 2008: $0.70M Foster military cooperation and bring Montenegro’s military forces up to the standards necessary for eventual NATO membership Build police and prosecutorial capacity to combat organized crime Increase public understanding of U.S. foreign policy objectives in the region Governing Justly and Democratically (GJD): FY 2007: $2.42M; Est. FY 2008: $3.15M Support the Montenegrin Parliament’s efforts to develop sound legislation and implement reforms necessary for improving economic growth Strengthen the advocacy and monitoring capacity of the NGO sector Improve the reporting and sustainability of independent media outlets Investing in People (IIP): FY 2007: 0; Est. FY 2008: 0.40M Target educational exchanges to help Montenegrins develop the skills and attitudes needed to create robust governance institutions, support increased economic activity, and bring Montenegro closer to Euro-Atlantic institutions Economic Growth (EG): FY 2007: $4.37M; Est. FY 2008: $4.39M Develop public and private partnerships at the municipal and regional level that provide community grants to create jobs and generate sustainable income Increase Montenegro’s capacity to adhere to international trade rules and establish transparent, regulatory structures to expand trade Build micro-enterprise capacity with NGOs whose members are entrepreneurs and farmers to provide services to the private sector Recent Successes: Montenegro has worked cooperatively with NATO to help ensure stability in the region and is due to sign a NATO Transit Agreement, which will allow NATO forces to transit Montenegro in the event reinforcements are needed in Kosovo. NGOs have access to some of the most important prerequisites for sustainability, such as a clear system of self-regulation and transparency, better cross-sector partnerships, and a powerful platform for advocacy. With USG assistance and support, Montenegro has created a business-friendly investment climate, leading to impressive economic growth, established the lowest corporate tax rate in the region (9%), and has dramatically improved its tax policy. A key achievement of USG technical assistance to the agriculture sector has been the strengthened local capacity to diagnose and control animal diseases, improved safety and quality of products, and expanded trade options for the regional market.

Montenegro: Est. FY 2008 USD Thousands   Total For. Ops. Accounts** $8,630 Assistance for Eastern Europe and Baltic States: $7,935 Non-proliferation, Anti-terrorism, De-mining and Related Programs (NADR): $600 International Military Education and Training (IMET): $95 For More Information: SEED Annual Report: http://www.state.gov/p/eur/rls/rpt U.S. Embassy: http://podgorica.usembassy.gov/ Country Profile: http://www.state.gov/r/pa/ei/bgn/70949.htm

*Division J of the Fiscal Year (FY) 2008 Omnibus Appropriations Act: Department of State Foreign Operations and Related Programs Appropriations Act, 2008, including: SEED, Child Survival and Health (CSH), NADR, IMET and Foreign Military Financing (FMF)

**Estimate from FY 2009 Congressional Budget Justification; Website: http://www.state.gov/documents/organization/101440.pdf

Graph Explanations

• Pie Chart: For estimated Fiscal Year 2008 to Montenegro fifty percent of U.S. assistance went to the objective of Economic Growth (EG), thirty-seven percent to Governing Justly and Democratically (GJD), eight percent to Peace and Security (PS) and five percent to Investing in People (IIP)
• The Bar Graph covers U.S. assistance to Montenegro from 1998-2007:
  • In Fiscal Year 1998: 4.87 Million dollars in Support for Eastern European Democracies (SEED) assistance was given to Montenegro; and no other United States Government (USG) assistance was given
  • Fiscal Year 1999: SEED: 25.90 Million dollars; other USG: 0 dollars
  • Fiscal Year 2000: SEED: 42.25 Million dollars; other USG: 0 dollars
  • Fiscal Year 2001: SEED: 34.74 Million dollars; other USG: 37.60 Million dollars
  • Fiscal Year 2002: SEED: 60.00 dollars; other USG: 0 dollars
  • Fiscal Year 2003: SEED: 40.00 dollars; other USG: 40.00 Million dollars
  • Fiscal Year 2004: SEED: 34.74 dollars; other USG: 0 dollars
  • Fiscal Year 2005: SEED: 19.85 dollars; other USG: 1.76 Million dollars
  • Fiscal Year 2006: SEED: 15.00 dollars; other USG: 1.10 Million dollars
  • Fiscal Year 2007: SEED: 7.94 dollars; other USG: 1.84 Million dollars