“Diplomacy in a time of scarcity”

A new report on funding American diplomacy argues that people are more important than programs. Budget cuts in State and USAID should fall on programs, not personnel, the report says.

The American Academy of Diplomacy and the Stimson Center, authors of the report, make the “prudent working assumption” that the overall federal budget will be reduced, and that the budget for international affairs will be reduced in parallel. The reductions should fall on programs, which can be quickly restored, and not on personnel, who take “years if not decades” to replace. The report warns against falling into a “transition trap” like the personnel cutbacks of the 1990s, which left American diplomacy ill-prepared to deal with the international environment that emerged after the Cold War.

Program cuts affect only the programs involved, say the authors, but “personnel reductions damage policy across the board.” The report leaves to State and USAID the task of identifying which programs to cut.

The report points out that total personnel costs at State and AID are about $4 billion in a $55 billion budget. Even severe cuts “would barely move the needle downward.” The corollary is that adding personnel—and the report calls for adding 722 positions at State and AID, to complete the hiring program begun in 2009—would barely the move the needle up.

The report provides considerable detail on staffing changes over the past five years, showing how personnel are distributed by rank and specialty, how new positions have been used, and where gaps remain. Recommendations emphasize the need for trained personnel and propose budget and policy changes to raise skill levels at State and USAID.

The report quotes Walter Lippmann: Diplomacy is “the shield of the Republic.” The stronger the shield, says the conclusion, the less often the sword is required.

The whole report, titled “Diplomacy in a Time of Scarcity,” is less than fifty pages. The executive summary and recommendations are three pages. One can hope that the agencies will be as efficient in choosing their programs as the authors were in choosing their words.

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End of the line for the FCS?

Inside U.S. Trade,  a  specialized newsletter, reported October 19 that the Commerce Department “is actively considering … merging the U.S. and Foreign Commercial Service (USFCS) with the office of Market Access and Compliance (MAC),” another division of the Department’s International Trade Administration. The FCS trade promotion programs, and the twenty employees who administer them, might under this scenario move into ITA office of Manufacturing and Services. The reorganization plan is said to be under review at the White House Office of Management and Budget. An ITA spokesman quoted in Inside U.S. Trade said that Commerce will discuss the proposal with Congress before proceeding, even though the reorganization will not require legislation and consultation is not required by law.

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The fiscal cliff and the foreign service

Under the terms of the Budget Control Act of 2011 — the budget deal that raised the ceiling on the national debt and kept the government operating through fiscal year 2012 — Congress bound itself as best it can to pass legislation that cuts the projected federal deficit by a total of $1.5 trillion over ten years, and to do so before this Congress ends at the beginning of January, 2013. If such a law does not pass, the Act mandates that the goal be accomplished through cuts in discretionary spending carried out by sequestration of funds, beginning in 2013. (Congress cannot really bind itself. The lame-duck session that will grapple with this issue could avoid the choice set for it by amending the Budget Control Act.)

No one knows how sequestration would be carried into force. For the Foreign Service, it is likely that hiring would stop or be reduced to some level below attrition. Employees could be placed on furlough (involuntary leave without pay) or, if the budget squeeze lasts long enough, laid off through a reduction in force. Foreign assistance programs would likely be cut back, and some programs eliminated. Services provided, such as visa and passport services, could be reduced through reduction in hours and locations, and fees could be increased where the Department has authority to raise them.

Foreign Service pay is already frozen under a general federal pay freeze in effect through March 2013. Pay increases associated with promotions will continue, to the extent that promotions are awarded.

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The Foreign Service is “America’s Other Army”

Journalist Nicholas Kralev (Financial Times, Washington Times) has published America’s Other Army: The U.S. Foreign Service and 21st Century Diplomacy. Kralev, who visited more than fifty embassies and conducted some 600 interviews, profiles of foreign service officers and specialists to illuminate and demystify the work of American diplomacy in a dangerous world. Learn more at americasotherarmy.com.

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House and Senate appropriators report on State/Foreign Operations for FY 2013

The full appropriations committees in the House and Senate have now reported out their recommendations for State and Foreign Operations for fiscal year 2013. Here is a quick summary (amounts are in billions of dollars):

TOTAL of which:
OCO*
FY 2012 enacted 53.5 11.2
FY 2013 requested 54.9 8.2
House Report 112-494 48.7 8.2
Senate Report 112-172 52.3 2.3

* overseas contingency operations, including Afghanistan and Iraq

Neither committee approved funds for foreign service comparability pay — that is, funds to allow base salaries paid to foreign service personnel abroad to be set at the same level as salaries paid to foreign service personnel in Washington. (Pay in Washington is above the published scale, to compensate for the higher cost of living in the Washington area.)

The House report did not eliminate funding for comparability pay but says that ”the authority to grant overseas comparability pay is a matter within the jurisdiction of the authorization committee and should be considered in the context of legislation addressing the authorities and compensation rules governing the Foreign Service.”

The House report does not include the requested funds for new foreign service hires above attrition.

The Senate report was especially critical of State budget work. The report said that State’s “spend plans” lacked useful information. “Rather than plans,” said the report, “these documents would be more aptly described as cursory recitations of broadly stated goals” that leave “the reader to wonder how funds will be used to achieve specific objectives.”

 

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Senate Appropriators Agree on State/USAID Funding for FY2013

On April 19 the Senate Appropriations Committee approved $53 billion for Department of State, Foreign Operations, and Related Programs — the State-USAID complex. Of the total, $3.2 billion is identified as funds for overseas contingency operations (OCO), essentially Iraq, Afghanistan, and Pakistan. The rest, about $49.8 billion, is basic funding. The total is essentially the same as current FY2012 funding, but the committee’s mark, recognizing the expectation of continued reductions in the State/AID presence in Iraq especially, shifts money away from OCO and back to base funding. The total is about 3 percent below the administration’s request.

The administration’s FY2013 request could face a tougher time in the Republican-controlled House. House appropriators are expected to address the State and Foreign Operations bill in about three weeks.

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“State of Disrepair” – a new book by Kori Schake

Kori N. Schake, a Defense Department, National Security Council, and State Department official in the George W. Bush administration, has written a short, strong critique of the culture, leadership, management, and skills of the Department of State. Ms. Schake directs much of her criticism at the career foreign service, which she says is individualistic and lacks the unity of purpose that drives the military. She faults State for lack of planning and an unwillingness to analyze its own performance. She connects these institutional weaknesses to State’s problems in developing a strongly justified budget and building a larger constituency in Congress. Few of her criticisms are new, but the lack of novelty may only be a sign that State’s weaknesses have long been evident and uncorrected. Many of her proposed solutions are variations on “do as the Pentagon does,” but she is clear and concise in her presentation.

Provocatively, Ms. Schake urges State to make protecting Americans its primary goal, and consular work its most important function. She argues that the Foreign Service attracts too many candidates and has too high a rate of retention. She recommends cutting Foreign Service pay and hiring a large number of mid-grade officers outside the examination system.

State of Disrepair: Fixing the Culture and Practices of the State Department is a publication of the press of the Hoover Institution, where Schake is a research fellow.

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Hiring in 2012, 2013

Secretary Clinton’s Diplomacy 3.0 initiative, launched in 2009, called for increasing the size of the foreign service by 25 percent in five years, by the end of fiscal year 2013.

Despite budget pressures, by the end of FY 2012 the foreign service will be nearly 21 percent bigger than it was at the end of FY 2008.

In its budget request for FY 2013, the Department is asking for 122 new foreign service positions. Of these, 74 would be used to expand the training float — the surplus of officers over operational positions — and allow the service to adapt to changing demands through increased in-service training and education.

Even if Congress ends up funding the Department at something less than requested levels, it is widely expected that hiring in FY 2013 will not fall below replacement levels. The gains through the end of FY 2012 should be retained.

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Breaking Down the Budget

The administration has asked Congress for $56.4 billion for spending on international affairs, including $51.6 billion for State and USAID, in fiscal year 2013. The figure for State and USAID represents an increase of about $789 million or 1.5 percent over the estimated actual FY 2012 budget.

Where do State and USAID fit in the president’s $3.8 trillion budget request?

Spending on State and USAID is about 1.35 percent of the total federal budget, which breaks down as follows:

Mandatory program spending (chiefly Social Security, Medicare, and Medicaid) 58%
Discretionary national security spending (chiefly Defense, Homeland Security, and Veterans Affairs) 22%
Other discretionary spending (chiefly Transportation, Education, Justice, Commerce, Housing, Agriculture) 13%
Interest on the federal debt 6%
State and USAID 1%
TOTAL 100%

The administration’s budget request for FY 2013 includes funding for 82 new foreign service positions and 39 civil service positions in the Department of State. If Congress approves the budget request, State Department hiring would increase accordingly.

The budget request breaks down as follows (in USD billions):

Function 150, International Affairs 56.4
Of which: State and USAID 51.6
  Frontline states (23%) 11.8
      Iraq   4.8
      Afghanistan   4.6
      Pakistan   2.4
Conflict prevention, direct     assistance, multilateral contributions (28%) 14.6
      Israel    3.1
 Human and economic security (28%)  14.7
      Global health    7.9
      Food security    1.0
Global presence (people, embassies, etc.) (21%) (Funding for the foreign service is here) 10.4

Budget documents and testimony are here (links open in new window):

Executive budget summary

Congressional Budget Justification: Department of State Operations 

Secretary Clinton’s Testimony before the House Appropriations Subcommittee

Secretary Clinton’s Testimony before the Senate Appropriations Subcommittee

 

Secretary Clinton’s Testimony before the House Foreign Affairs Committee 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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State, Defense agree on personnel exchanges

The Departments of State and Defense have reached a formal agreement — a memorandum of understanding (MOU) — on exchanges of personnel between the two agencies. Under the agreement, State will provide almost 90 foreign policy advisors (POLADs) to the Department of Defense and will send almost 30 foreign service and civil service personnel for training and education at the military academies, the war colleges, and other DOD academic institutions. The Department of Defense will increase thenumber of its personnel at State from 50 to 98.

State’s press release is here.

Posted in assignment, Stabilization and reconstruction, Training and languages, Uncategorized | Leave a comment