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PUBLIC POLICY UPDATE March 30, 2012 WASHINGTON UPDATE Ryan budget resolution passes House, setting up appropriations

gap with Senate After rejecting alternative budgets from conservatives, progressives and various other groups, the House this week passed the FY2013 budget resolution that was backed by the Republican leadership and had been approved by the House Budget Committee. While the resolutions proposed levels for particular budget functions (International Affairs, Defense, Transportation, etc.) are purely advisory, it does set a limit on total discretionary spending that is binding, $1.028 trillion, to which the House Appropriations Committee must now conform. That level is $19 billion less than the level agreed to as part of the debt deal last July and incorporated into the Budget Control Act of 2011. That level, $1.047 trillion, is the level the Senate plans to adhere to. Like last year, the two chambers Appropriations Committees will now be working with different totals while they develop their spending bills, and will have to negotiate some kind of compromise before final appropriations bills can be passed. Correction As was reported here last week, the FY2013 spending level proposed for International Affairs by this resolution (which, again, is purely advisory) is significantly below the total funding level enacted for International Affairs in the current fiscal year, FY2012. Our calculations last week pegged the proposed cut at 10 percent, based on numbers obtained from congressional sources that had been rounded slightly. The Budget Committee report accompanying the resolution has since become publicly available, with unrounded figures, and the math based on the unrounded figures pushes the percentage cut from about 10.4 percent up to about 10.6 percent, which rounds up to 11 percent rather than rounding down to 10 percent. In sum: based on figures in the House Budget Committee report (Report 112-421) accompanying the budget resolution passed by the House this week (H. Con. Res. 112), the resolution proposes about an 11 percent cut in International Affairs spending for FY2013. The numbers: $40.905 billion House budget proposal for International Affairs enduring programs $8.2 billion House budget proposal for International Affairs GWOT/OCO programs $49.105 billion total proposed for International Affairs in House budget (enduring plus OCO) $54.939307 billion FY2012 enacted for International Affairs (enduring plus OCO) $5.834307 billion cut proposed by House budget relative to FY2012 enacted 10.62 percent rounds to 11 percent Proposed cut as percentage of FY2012 enacted HEARING SUMMARIES Assessing Chinas Role and Influence in Africa House Foreign Affairs Committee Africa, Global Health, and Human Rights Subcommittee March 29, 2012 Witnesses:

Panel I Donald Y. Yamamoto, principal deputy assistant secretary of state, Bureau of African Affairs Panel II Carolyn Bartholomew, commissioner, U.S.-China Economic and Security Review Commission Panel III Stephen Hayes, Corporate Council on Africa J. Peter Pham, Michael S. Ansari Africa Center, Atlantic Council David H. Shinn, Elliott School of International Affairs, George Washington University Opening Statements: Chair Christopher Smith (R-NJ) Its difficult to quantify Chinas aid to Africa since its not reported publicly, but estimates exceed $10 billion. African development gains are being challenged, if not undermined, by Chinese competitiveness. An increasing number of Africans are becoming skeptical of Chinese behaviors in their countries. China refused at first to join sanctions against Sudan in protest of the Darfur genocide, and even threatened to veto any further move to impose sanctions. Rep. Jeff Fortenberry (R-NE) China is the largest foreign investor in Africa, with 87 percent of last years foreign investments. China is dominating high-conflict areas in Africa. Opportunities are booming in Africa, but will they benefit the Africans? Panel I Donald Y. Yamamoto China is an important part of Africas economic future, but is it a competitor or a partner? Chinas interests in Africa reflect its need of resources and market. Some of the U.S. governments interests dont align with Chinese interests. Chinas foreign direct investment in Africa has quadrupled in the last three years. Questioning: Chair Christopher Smith (R-NJ) 1. Have the U.S. embassies in Africa investigated human rights issues and importing of laborers? Yamamoto: o U.S. government is looking into the issue of the laborers, but more research needs to be done. o U.S. government is in dialogue with the Chinese government on the labor issue. 2. What can be done to curb bad Chinese labor practices from being exported to Africa? Yamamoto: 2

U.S. government is investigating whether the Chinese are abiding by business practices of Organization for Economic Cooperation and Development (OECD). o African leaders are also looking into Chinese business practices carefully. 3. China has invested heavily in infrastructure development in Africa, while claiming the adjacent resources. Comment on this? Yamamoto: The bottom line is whether China can be a responsible trading partner with Africa. 4. Are the Chinese exporting their family planning practices to Africa? Yamamoto: o The U.S. government is looking into child labor and trafficking issues. o The one child policy is not being practiced in Africa. o U.S. government has communicated to the Chinese that development is successful when invested in womens health. o Ranking Member Karen Bass (D-CA) 1. What are the differences between the U.S. and China? Yamamoto: Governance and transparency. 2. Give examples where China has undermined good governance in Africa? Yamamoto: Sudan the sale of arms was declared illegal under the UN Declaration, and in Libya. 3. Do the Chinese bribe government officials to get their way in investments in Africa? Yamamoto: Its possible. Rep. Jeff Fortenberry (R-NE) 1. What can American policy do to stop overran unfair policies that undermine Africa? Yamamoto: o U.S. position is to fight human rights violations and resource exploitation. o U.S. government is investigating how to improve transparency and accountability. o U.S. governments dialogue with the Chinese has been going on for the past 6 years. Panel II Carolyn Bartholomew China expects access to natural resources in Africa after aid is given. Arms sales are among the incentives. Chinas foreign aid is considered a state secret. Some African leaders think Chinas provision of the African Union (AU) headquarters is a good thing, but some are not as enthusiastic about it. Public skepticism of Chinas increasing presence has resulted in the growth of opposition movements in some countries. Questioning: Chair Christopher Smith (R-NJ) 1. Comment on how money distorts humanitarian rights and other crucial votes. Bartholomew: U.S. needs to step up in hosting delegations to share best practices in governance. 3

2. How does China measure up in humanitarian aid? Bartholomew: China has stepped up its efforts, but not as much as they should. 3. What type of international pressure do they respond to? Bartholomew: They respond to multifaceted pressures; young people and faith based institutions are an important part. 4. Whats Chinas role in global military efforts? Bartholomew: o Mostly peacekeeping operations with little military to military operations. o U.S. should also focus on Chinas telecommunication influence. Panel III J. Peter Pham Africa is expected to grow more than any other region in the world this year, except for China and India. Non-oil-based economies like the continents fastest growing subregional group, East African Community (EAC) are growing based on being a critical hub for financial and business services. The main driver of Africas growth, however, is demand from abroad, especially in emerging markets like China and India. China surpassed U.S. as Africas biggest trade partner. In order to help African countries improve their infrastructure, the Chinese government has offered many preferential loans and supports its financial institutions to expand commercial loans to Africa. Paralleling Chinas economic stake in Africa are its expanding political and security interests. David H. Shinn The difference between American and Chinese relations with Africa is the very structure of their governments and their economies. Unlike U.S. business in Africa, most of the large Chinese companies operating in Africa are state owned enterprises (SOEs). The links between the Chinese government and private companies is less clear. The nature of the U.S. governments economic system gives a huge advantage to the Chinese SOEs. There are persistent reports that are difficult to prove that Chinese companies are prepared to pay bribes to win contracts. Maintaining access to raw materials is at the top of Chinas list. Its important to put Chinas trade with Africa in perspective. U.S. support of democratization and the amelioration of human rights abuses in Africa are the topics of sharpest American and Chinese disagreements. Stephen Hayes There is a large growing Chinese private sector that has been encouraged to invest in Africa. The effects of Chinas investment in Africa have been largely positive in some nations, and have stirred global interest in Africa more than in any other time in history. o However, there are also deleterious effects to its investments in terms of lacking environmental controls, and displacement of African small marketplaces. 4

U.S. economic success in Africa will require greater public-private cooperation; new imaginative models will need to be implemented. ARTICLES AND REPORTS

CNN March 30: Israeli Forces clash with Palestinian protesters marking Land Day After an altercation between Palestinian demonstrators and Israeli forces, 37 people have been injured and one killed. The demonstration was for Land Day, in memory of the deaths of six demonstrators in 1976. March 28: Activist: No concrete sign Syria carrying out peace plan. Syria does not appear to be complying with the UNs peace plan, despite having approved it. This follows a pattern over the last year of the al-Assad regime making and breaking promises for peace. According to UN estimates, over 9,000 people have been killed by the governments violent response to the protesters. The Development News Wire March 28: NGOs tell governments ahead of Rio+20: Practice what you preach A transnational group of over 400 NGOs sent a letter to Ban Ki-Moon promoting the idea of water as a basic human right ahead of the Rio+20 summit. In particular, the NGOs object to proposed language from several developed countries in the draft outcome document undermining that concept. March 27: Syria Accepts UN-backed peace plan On Tuesday, the Syrian government accepted a peace plan proposed by former UN SecretaryGeneral Kofi Annan, who is acting as an envoy for both the UN and the Arab League to Syria. One key aspect of the plan is a daily two hour ceasefire so that humanitarian aid can be delivered. Al Jazeera March 27: Clashes continue as Sudan Summit Suspended A peace summit between Sudan and South Sudan has been suspended following continued attacks on the border between the two countries. Representatives from both countries have said they do not want the clashes to turn into full blown war. March 27: EU asks Mali coup leader to restore order Bertrand Soret, acting head of the European Union delegation in Mali, asked the coup leader to restore legal order. Mali has been suspended from ECOWAS, and several governments and organizations have suspended aid to the country. Disclaimer: Articles linked in the Update are intended to provide a dashboard view of newsworthy and topical issues from popular news outlets that will be of interest to readers. The articles are an information sharing vehicle rather than an advocacy tool. They are in no way representative of the views of InterAction or the U.S. NGO community as a whole.

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