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Rule of Law - Global: Funding for Domestic and International Agencies that Promote Rule of Law

Overview

One of the ABA's primary goals is to advance the rule of law in the world. In furtherance of that goal, the ABA strongly supports adequate funding for international organizations that promote democratization and the development of the rule of law - in particular, the ABA supports the prompt payment of the United States' obligations to the United Nations for its general assessments and peacekeeping expenses.

During the 106th Congress, legislation was enacted to authorize the repayment of U.S arrears owed to the United Nations. The measure, commonly referred to as the Helms-Biden agreement, authorizes $926 over three years - the payment of $819 million of debt the U.S. owes the U.N. and the forgiveness of $107 million the U.N. owes the U.S. The payment plan authorized the release of the arrears in three stages upon certification that certain reforms have been enacted by the U.N. and requires the U.N. to accept the $926 million package as full repayment for the approximately $1.56 billion it has assessed in U.S. arrears. The first payment of $100 million was made in the fall of 2000. The second payment of $582 million was authorized on October 5, 2001 (P.L. No. 107-46) after the U.N. revised the scales of assessment for dues - reducing the U.S. share of the regular budget to 22 percent and of the peacekeeping budget to 26 percent, over three years. The final payment of $244 million was authorized on September 30, 2002 (P.L. No. 107-228). The legislation also released an additional $78 million to cover a shortfall in recent peacekeeping payments, raises the cap on U.S. contributions to U.N. peacekeeping missions, authorizes the U.S. to pay its dues on time for the first time in 20 years, and authorizes funds that will allow the U.S. to rejoin the U.N. Educational, Scientific and Cultural Organization (UNESCO).

Status

While the U.S. has finally paid its outstanding arrears to the UN, it continues to pay its assessments to the UN regular budget at least 10 months, and in some cases an entire year, late. Without the U.S. dues - nearly 1/4 of the operating budget - the UN must borrow internally from its peacekeeping accounts, which means that countries that contribute to peacekeeping missions aren't reimbursed on a timely basis. Other countries have also begun to follow the U.S.'s example, and not pay their dues at the time of assessment. To put our payment schedule back on track, the U.S. could either make a lump payment through an advance appropriation, or incrementally increase each year's payments over several years.

On February 6, 2006, President Bush submitted his budget request to Congress for Fiscal Year 2007. The request includes $35.1 billion for the international affairs budget, an 11% increase from last year, but still accounting for less than 1% of the overall federal budget. The FY2007 request contains $1.269 billion for Contributions to International Organizations, including $922 million for UN and Affiliated Agencies ($422.7 million for the regular budget, $69.5 for UNESCO, and $101.4 million for the WHO). It also includes $1.135 billion for Contributions for International Peacekeeping Activities and $10 million for the UN Democracy Fund.

On March 16, the Senate adopted its version of the FY2007 Budget Resolution by a vote of 51-49. The resolution would provide $33.52 billion for the International Affairs Account, which is $1.587 billion below the Administration's Request. On March 29, the House Budget Committee approved a proposed FY 2007 Budget Resolution that provides $31.21 billion for the International Affairs Account. The full House began its consideration of the Budget Resolution the week of April 3, but due to significant disagreements over certain budget rules and spending limits, did not ultimately adopt a FY2007 Budget Resolution.

The House and Senate are moving forward with funding for international affairs through the Appropriations process. The House, which provides funding for the international affairs account through two different subcommittees, passed its FY2007 Science-State-Commerce-Justice Appropriations bill (H.R. 5672) on June 29. Together with the FY2007 Foreign Operations, Export Financing and Related Programs bill (H.R. 5522), passed on June 9, the House provides a total of $32.21 billion for the international affairs budget. On June 29, 2006, the Senate Appropriations Committee approved a FY2007 Department of State, Foreign Operations and Related Agencies Appropriations bill which provides $32.86 billion for the international affairs account. The full Senate has yet to vote on the bill and it may be considered as part of an omnibus appropriations bill following the November elections.

The ABA supports funding the international affairs amount at or above the $35.1 billion level requested by the President, and supports increased funding for democratization and rule of law programs. On March 22, 2006, then-ABA President Michael Greco submitted a statement (PDF) to the House Appropriations Subcommittee on Foreign Operations, Export Financing and Related Programs. Greco noted that programs that promote the rule of law abroad are a sound investment of U.S. dollars that enhance the national security and economic prosperity of the U.S., as well as of the emerging democracies themselves. He urged the subcommittee to increase the overall amount of funding available for agencies and programs that support international rule of law initiatives and, specifically, for the ABA’s international technical legal assistance projects.

Key Points

  • Payment of U.N. Assessments
    Payment of assessed contributions to the UN is a legal obligation owed by all member states under Article 17 of the UN Charter. It is inconsistent with that legal obligation to condition payment of U.S. assessments on either reform or reorganization at the United Nations, or to link payment to restrictions on funding for specific programs.

    Failure to pay our financial obligations damages U.S. political credibility and marginalizes U.S. influence on the very reforms it seeks to implement at the U.N. If we fail to pay our assessed contributions, we do grave damage to our ability to insist that other countries abide by their international agreements, undermine our leadership role in strengthening human rights and erode the nation's commitment to expanding the rule of law in the world.
  • United Nations Development Program
    UNDP delivers high-quality, high-impact assistance to developing countries to strengthen legal institutions, promote sustainable democratic development and provide an environment conducive to the adoption of a free market economy.

    U.S. security interests are served by UNDP governance programs. Countries with effective governance structures are less likely to experience internal conflicts that create pressure for international intervention. In addition, U.S. economic interests benefit when developing countries mprove their institutions of governance. UNDP assists countries in establishing stable and transparent legal systems needed to encourage private sector investment and promote trade in goods and services.

ABA Policy

The ABA supports Congressional appropriation of funds for the full and prompt payment of arrears owed by the U.S. to the United Nations for general and peacekeeping assessments, and opposes linking the payment of arrears to any actions by the UN or its bodies. In addition, the ABA supports funding for organizations and programs that assist in the establishment of rule of law abroad, including the United Nations Development Program, and International Monetary Fund and the World Bank Group.

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Contact

Kristi Gaines
Legislative Counsel

Governmental Affairs Office
American Bar Association
740 15th Street, NW
Washington, DC 20005
Direct: (202) 662-1763
FAX: (202) 662-1762

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