C. David Welch

Assistant Secretary, Near Eastern Affairs Bureau

House Foreign Affairs Committee

Subcommittee on the Middle East and South Asia

“U.S. Assistance to the Middle East”

Chairman Ackerman, Congressman Pence, and distinguished Members of the Committee, it is a privilege to appear before you today.

Our Fiscal Year (FY) 2009 budget request reflects the centrality of the Middle East to United States foreign policy, our strategic commitment to our partners’ security, and our enduring interests in the region. This request reflects an integrated approach managed by the office of the Director of Foreign Assistance between the Department of State and USAID.

In the Middle East, U.S. assistance provides a key means to address some of our most pressing and important commitments. Long-term peace, stability, and economic growth in the region are critical to our national security. The United States and our regional partners are involved in a sustained effort to address pivotal issues affecting the balance between moderates and extremists across the region. Assistance will strengthen and expand U.S. capacity for engagement by enhancing our ability to jointly pursue solutions to vital national security issues and combat terrorism and extremism by promoting freedom, democracy, and access to economic opportunity.

Our concept for the region is to support peaceful solutions and to strengthen the hand of democratic leaders against extremists who use violence, repress fundamental freedoms and seek to undermine our interests and our friends. Our FY 2009 budget reflects our continued focus on providing security assistance to our allies to promote our objectives--building well-governed, democratic states, promoting human rights and reducing poverty requires a foundation in security.

Our diplomacy is married up with our programmatic activities across the region in pursuit of our priorities. These priorities begin with a positive outcome in Iraq. Other key U.S. priorities include sustaining the security of Israel; advancing a two state solution to the Israeli-Palestinian conflict; countering the Iranian threat; enhancing the defensive capabilities of our friends in the Gulf; strengthening relations with responsible states in the region, including Egypt, Jordan, and the Gulf states; and supporting Lebanese democracy and sovereignty. In addition, the U.S. will continue to promote efforts involving political, economic, and educational reform, which contribute to our long-term efforts in the war against terror.

In Iraq, we must continue to support increased security and national reconciliation efforts for Iraq, promote moderates, and empower the Iraqi Government to take increasing responsibility for the future of the country. We have seen important progress in recent months, yet the events of the last few weeks demonstrate that the situation is fragile and requires our continued focus and support.

Assistance for Iraq will be used to improve the capacity of the Government of Iraq to deliver essential services to its citizens; build strong governance structures; enhance civil society institutions; expand economic reforms; bolster Iraq’s private sector economy; implement key measures needed to decrease sectarian and ethnic violence; strengthen the foundation for rule of law and human rights; and enhance governance in Iraq’s regions, provinces, and local municipalities. This request includes economic and governance reform programs that take advantage of recent security gains to help Iraqis transition to self sufficiency.

With the approach of the sixtieth anniversary of the State of Israel, our commitment to the security of this key ally is stronger than ever. This past August, the United States and Israel signed a memorandum of understanding that will underpin our security relationship through 2018. The arrangement calls for $30 billion to be provided to Israel over ten years, understanding that this is subject to the availability and annual appropriation of foreign assistance funding. This will allow Israel to maintain its qualitative military edge and to strengthen its ability to defend itself against regional threats and terrorism.

Israeli-Palestinian peace is a top foreign policy priority. It is essential to the long-term security of the State of Israel and a long overdue step that would improve the future for Israelis and Palestinians alike. We are actively engaged in efforts to support Israel and the Palestinians as they negotiate core issues with the goal of reaching a peace agreement by the end of this year. Robust foreign assistance in support of the current Palestinian Authority government, which is firmly committed to peace and has staked its reputation on its ability to work constructively with Israel toward a two-state solution, is critical to ensuring that a future Palestinian state will be democratic, capable of providing law and order, economically viable, and a source of stability in the region.

U.S. economic support funds (ESF) will support the Palestinian Authority’s Palestinian Reform and Development Plan and the PA’s efforts to reform the Palestinian economy, strengthen rule of law, improve local infrastructure, build institutional capacity, create jobs and promote initiatives in health and education.

Egypt is a critical regional partner and a key player in the pursuit of a comprehensive Israeli-Palestinian peace. Our assistance to Egypt is evolving in response to Egypt’s improving economic situation. The level of ESF for Egypt has been gradually reduced to $200 million, a significant decline since the 1990s. Our economic assistance program currently focuses on benchmarked policy reform/cash transfer arrangements, specifically, reforming Egypt’s financial sector, as well as promoting democracy, human rights and governance, creating private sector jobs, providing health services, and improving basic education. A portion of the $200 million is also dedicated to democracy and governance programs, including working with Egyptian civil society and NGOs. Our FMF budget of $1.3 billion strengthens our strategic partnership with Egypt by helping to modernize the Egyptian military and enabling Egypt to acquire systems and equipment that are aligned with our shared security goals.  

Funds for Lebanon will support our end-goal of maintaining a sovereign, stable, democratic, and economically viable Lebanon. Assistance programs will provide the security services with the ability to maintain law and order, combat a growing terrorist threat, and implement all provisions of UN Security Council resolutions 1559 and 1701. Lebanon ESF will be used to establish transparent, credible, and democratic governing institutions, educational and civil society institutions, economic growth, humanitarian assistance, and health initiatives.

A key element to security in the region is countering the Iranian threat. Foreign Military Financing (FMF) increases to Bahrain and Oman will enhance the self-defense capabilities and coordination of our partners in the Gulf. This assistance will help strengthen our increased efforts with the Gulf States to support our peace and security goals in the region.

As we confront the Iranian threat, we note that our door remains open to friendship with the Iranian people. Our FY 2009 ESF request for Iran reflects this Administration’s commitment to strengthening Iran’s civil society, providing greater access to unbiased information, increasing awareness of human rights, promoting good governance and anti-corruption efforts, and increasing opportunities for academic, professional, and cultural exchanges.

Our steadfast ally Jordan is providing significant support to our operations in Iraq and other shared strategic objectives in the Middle East. Jordan is a moderate leader in the region. Our security assistance to Jordan will focus on training and equipping peacekeepers, enhancing military professionalism, improving counterterrorism capabilities, and strengthening border security. Our economic assistance will promote Jordan’s economic growth, help address the needs of Iraqi refugees in Jordan, support Jordan on its path toward political reform in the area of democracy and governance.

Economic support funds across the region will be used to promote reform, democracy and human rights, and promote democratic leaders in the region. The Middle East Partnership Initiative is a critical tool that allows us to look broadly across the region and rapidly respond to indigenous reform efforts. Funds will be used to redress the deficits in the region associated with unaccountable, undemocratic governments, weak educational systems, inadequate government services, and economies that provide insufficient job opportunities for young people. Funding will also be used to support women’s empowerment.

Stepping outside of the Middle East, we see the growing extremist threat in North Africa and the need to provide support to governments and their counterterrorism efforts, including addressing the flow of foreign fighters into other regions. We are seeking funds for Trans-Sahara Counter-Terrorism Partnership (TSCTP) activities in the Maghreb to support individual country and regional capabilities to defeat terrorist organizations, disrupt efforts to recruit and train new terrorist fighters, and counter efforts to establish safe havens for domestic and outside extremist groups.

Robust assistance levels for the region remain essential to promote regional peace and stability and to advance the vital foreign policy interests of the United States. Sustained, appropriate foreign assistance levels in the region are essential to confronting the gravest threats to our national security and will strengthen and expand the capacity of our partners to help us meet important U.S. political, economic, and security goals.

Equally essential are resources to ensure the strength of our regional diplomatic presence. During the Cold War, we allocated significant resources to counter the Soviet threat. For the most part, this did not entail large diplomatic missions in the Middle East.

Today the need for a strong U.S. diplomatic profile in the Middle East has increased along with the extent to which the threats to our national security emanate from the region. We need to ensure that our posts are appropriately staffed, that our diplomats are adequately trained, to include training in critical languages, and that our diplomats in the field have the resources necessary to help counter the threats they face. This includes armored vehicles and sufficient security protection, safe facilities and housing and support for an unprecedented pace of operations. Where appropriate, it includes incentives for service in unaccompanied and high hardship posts, including support for separated family members. Maintaining a robust diplomatic presence is an integral element in countering those who oppose our interests and the security of our allies in the region. While sometimes the appropriate response to a diplomatically unwelcoming atmosphere is to reduce our presence, more often than not it is to ensure that presence remains strong.

During the Cold War, the men and women of the Department of State and other civilian agencies viewed themselves as privileged to serve their country abroad in challenging times. My colleagues serving in the Middle East today bring the same spirit of dedication and patriotism to their missions. I am proud to serve with them and on their behalf thank you for your support.