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U.S. Assistance Programs in China

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U.S.-Funded Assistance Programs in China Thomas Lum Specialist in Asian Affairs April 24, 2009July 9, 2010 Congressional Research Service 7-5700 www.crs.gov RS22663 CRS Report for Congress Prepared for Members and Committees of Congress U.S.-Funded Assistance Programs in China Summary U.S. government support of rule of law and civil society programs in This report provides legislative and policy background concerning U.S. assistance programs in the People’s Republic of China (PRC) constitutes a key component of its efforts to promote democratic change in China. . The U.S. Agency for International Development (USAID) does not have an official presence in China. The majority of congressional foreign operations appropriations for the PRC promotes the rule of law, civil society, and political development in the country. These programs constitute a key component of U.S. efforts to promote democratic change in the PRC. Other related U.S. activities include participation in official bilateral dialogues on human rights, public diplomacy programs, and open criticism of PRC policies. During the past decade, U.S. democracy assistance to China has grown in size and breadth. Funding has grown from an annual average of $11.1 $9.9 million during the 2000-2004 period, mostly for democracy assistance and aid to Tibetans, to $31.535.3 million during the 2005-2008 period, which included2009 period. During the latter period, the United States supported not only democracy and Tibetan assistance but also new funding for programs but also HIV/AIDS programs, educational exchanges, and expanded rule of law programs in the PRC that include environmental law and criminal justice. Between 2001 and 2010, the United States government and health care programs (HIV/AIDS awareness, prevention, and treatment). Between 2000 and 2008, the United States government authorized or made available roughly $182nearly $275 million for foreign operations programs in China, of which $159229 million was devoted to human rights and democracy activities and to Tibetan communities. Most U.S.-funded programs in the PRC aim to promote the rule of law and civil society in China using special allocations from the Department of State’s Human Rights and Democracy Fund (HRDF). The U.S. Congress has was devoted to rule of law and civil society programs and to Tibetan communities. The Department of State’s Human Rights and Democracy Fund (HRDF) has been the principal means of support for U.S. rule of law and civil society activities in China. The Development Assistance (DA) account, administered by the U.S. Agency for International Development (USAID), has been a growing source of funding for rule of law programs. The U.S. Congress has played a leading role in initiating programs and determining funding levels for these objectives. Non-governmental organizations, such as the Ford Foundation , and other countries also provide substantial democracy-related assistance to the PRC. Some experts argue that foreign-funded rule of law and civil society efforts in China have produced limited gains due to PRC political constraints. Others contend that such programs have helped to build social foundations for political change and have bolstered reform-minded officials in the PRC government. Some analysts advocate greater efforts at evaluating the effectiveness of rule of law, civil society, and democracy-related programs. substantial democracy-related assistance to the PRC. U.S. rule of law and civil society programs have created a web of relationships among governmental and non-governmental actors and educational institutions in both the United States and and China. Despite growing contacts and common interests among these entities, Chinese civil society groups remain subject to PRC restrictions and occasionalperiodic crackdowns on their activities. Some of these groups also have been affected by the ups and downs of the U.S.-China bilateral relationship. Some experts argue that foreign-funded rule of law and civil society efforts in China have produced limited gains due to PRC political constraints. Others contend that such programs have helped to build social foundations for political change and have bolstered reform-minded officials in the PRC government. Congressional Research Service U.S.-Funded Assistance Programs in China Contents Overview ....................................................................................................................................1 Policy Debates ......................................................................................................................2 Program Development ................................................................................................................3 Other Restrictions on Foreign Aid ..Additional Programs .......................................................................................4 FY2008-FY2009 Appropriations .................................................................................................5 Earthquake Relief ............................5 Restrictions on Foreign Aid.....................................................................................................6 Foreign Operations Appropriations: Legislative History (1999-2007) ..........................................7 FY2000-FY2003 Appropriations ...........................................................................................7 FY2004-FY2007 Appropriations ...........................................................................................7 Key Actors and Programs............................................................................................................8 Bureau of Democracy, Human Rights, and Labor (DRL) (Department of State).....................8 Office of American Schools and Hospitals Abroad (Department of State) ..............................8 Department of Labor .............................................................................................................9 National Endowment for Democracy.....................................................................................9 Temple University...........................................6 Foreign Operations Appropriations, FY2008-FY2011..................................................................6 Legislative History: Foreign Operations Appropriations, FY2000-FY2007 ..................................9 FY2000-FY2003...................................................................................................................9 FY2004-FY2007.................................................................... 10 Figures Figure 1. U.S. Assistance to China by Type, 2000-2008...............................................................59 Tables Table 1. Selected U.S. Assistance to China, 2000-2009.....FY2000-FY2010 ...........................................................78 Contacts Author Contact Information ...................................................................................................... 10 Congressional Research Service U.S.-Funded Assistance Programs in China Overview U.S. government support of rule of law and civil society programs (democracy assistance) in the in the People’s Republic of China (PRC) constitutes a key component of its efforts to promote democratic change in China. Other related U.S. activities include participation in official bilateral dialogues on human rights, the U.S.-China bilateral human rights dialogue, public diplomacy programs, and open criticism of PRC policies.1 During the past decade, U.S. assistance to the China has grown in size and breadth. Funding has grown from an annual average of $11.19.9 million during the 2000-2004 period, mostly for democracy assistance and aid to Tibetans, to $31.535.3 million during the 2005-20082009 period, which included not only democracy and Tibetan assistance but also new funding for educational exchanges and health care programs such as HIV/AIDS awareness, prevention, and treatmentHIV/AIDS programs and expanded rule of law programs, such as environmental law and criminal justice. Compared to U.S. assistance missions in most other Asian countries, which focus largely upon U.S. foreign operations programs in China play less significant roles in the areas of development (health, education, and economic growth), good governance (through direct assistance to government entities), and international security. The majority of U.S. funding for programs in China promotes rule of law, civil society, and political developmenteconomic growth), counterterrorism, and good governance objectives, U.S.-supported aid activities in China do not play roles in the areas of economic development and international security. Most U.S.-funded programs in the PRC aim to promote political development and civil society using special allocations from the Department of State’s Human Rights and Democracy Fund (HRDF). Other appropriations provide for helping to protect Tibetan culture and promote sustainable development and the environment in Tibetan areas of The U.S. Agency for International Development (USAID)’s Development Assistance (DA) account has provided growing support for rule of law programs since 2006. Other foreign operations appropriations provide for aid activities related to promoting sustainable development and protecting the culture and natural environment of Tibet and Tibetan areas of China. The U.S. Congress plays a greater role in determining aid levels for China foreign operations appropriations for China than it does for most other countries. The U.S. Agency for International Development (USAID) other aid recipients. USAID does not have an official presence or mission in the PRC, due in part to the PRC government’s reported human rights abuses. Foreign assistance appropriations for China have been administered chiefly by the rights abuses. Democracy programs in China are mostly administered by the Department of State’s Bureau of Democracy, Human Rights and Labor (DRL), which follows Congress’ authorizations in annual foreign operations appropriations measures, and the Regional Development Mission for Asia. By . By contrast, most countries with USAID missions receive most of their assistance through the Department of State’s regional bureaus, which make annual requests that are approved by Congressplay principal roles in determining aid levels through annual congressional budget justifications. Despite its growth, U.S. assistance to China remains relatively limited. Between 20002001 and 20082010, the United States government authorized or made available roughly $182nearly $275 million for foreign operations programs in China, of which $159229 million was devoted to human rights and democracy activities and to Tibet. In FY2008, rule of law and civil society programs and to Tibetan communities. In FY2010, total funding for U.S. assistance programs in China represented about 6.5% of total U.S. foreign aid to East Asia. the East Asia and the Pacific region was an estimated $776 million while appropriations for China was $48.9 million.2 The top recipients of U.S. assistance in East Asia in 2008 were Indonesia, the Philippines, and Vietnam, which received an 2010 were Indonesia (an estimated $189218 million), the Philippines ($144 million), and Vietnam ($122 million).3 1 See CRS Report RL34729, Human Rights in China: Trends and Policy Implications, by Thomas Lum and Hannah Fischer. 2 U.S. Department of State Congressional Budget Justification, FY2011. Appropriations for China includes DRL grants of an estimated $17 million and Peace Corps funding of $2.7 million. 3, $119 million, and $102 million, respectively. 1 After 2001, Indonesia and the Philippines received large increases in U.S. annual assistance as front-line states in the Bush Administration’s war on terror. The bulk of U.S. assistance to Vietnam is HIV/AIDS program support. See Figure 1 and Table 1. Congressional Research Service 1 U.S.-Funded Assistance Programs in China According to the Organization for Economic Cooperation and Development (OECD), China’s top aid donors are Japan, Germany, and France, which provided $1.2 billion, $454 million, and $196 million, respectively, on an annual average basis in 2006-2007.2 However, some major aid 1 For information on U.S. assistance to Asia, see CRS Report RL31362, U.S. Foreign Aid to East and South Asia: Selected Recipients, by Thomas Lum. 2 OECD http://www.oecd.org/dataoecd/1/21/1880034.gif. Congressional Research Service 1 U.S.-Funded Assistance Programs in China donors, such as Japan and Germany, provide a large share of their foreign assistance in the form of loans rather than grants.3 Some policy makers in these countries have advocated reducing their development aid to China, due largely to China’s rise as an economic power.bilateral official development assistance (ODA) donors are Japan, Germany, France, and the United Kingdom. In terms of grant disbursements, in 2008, Japan, Germany, and France provided $283 million, $391 million, and $174 million, respectively. By contrast, the United States extended $65 million in grant assistance, according to OECD data.4 With the exception of the United States, major bilateral aid donors to China provide concessionary loans that exceed grant assistance in dollar value. In 2008, Germany and France extended $493 million and $178 million, respectively, in ODA loans to the PRC while Japan provided $922 million in loans in 2007. Some policy makers in these countries have advocated reducing their development aid to China, due largely to China’s rise as an economic power. According to OECD statistics, Japanese, German, and French ODA to China in 2008 was devoted predominantly to education programs. In 2008, the United States provided the greatest funding for “government and civil society” sector programs ($27.7 million), compared to the largest donors.5 European Union aid efforts in the PRC, particularly in the area of legal development, reportedly exceed those of the United States in terms of funding and place greater emphasis on commercially-oriented rule of law. According to the European Commission, EU assistance to China has moved away from the areas of infrastructure and rural development and towards support for social and economic reform, the environment and sustainable development, and good governance and the rule of law. The EU funded aid projects and programs worth €181 million ($235 million) in 2002-2006.46 For the 2007-2013 period, the EU plans to allocate €10 million ($13 million) for democracy and human rights programs and non-governmental organizations (NGOs).57 The European Union also has set up a joint law school administered through the University of Hamburg and located in the China University of Politics and Law in Beijing. In other comparative terms, the Ford Foundation, which does not receive U.S. government support, offered grants worth $220 million for programs in China duringbetween 1988- and 2006. The Foundation extended grants totaling $19.6 million, $16.8 million, and $17.9 million in 2006, 2007, and 2008, respectively. Most Ford Foundation funding in China has supported governance, democracy, and civil society programs, followed by health, education and cultural activities and economic development and environmental projects.6worth $14.4 million and $21.4 million in 2007 and 2008, respectively. Ford Foundation program areas in China include government transparency and accountability, civil society, criminal justice, secondary education, community rights over natural resources, and reproductive rights.8 Policy Debates As with many efforts to help reform China’s political system and conduct from without, there has been little evidence of fundamental change. Some experts argue that foreign-funded rule of law and civil society efforts in China have produced limited benefits due to PRC government political constraints, including marginal results due to PRC political constraints, such as the lack of judicial autonomy, restrictions on lawyers, weak enforcement of laws, and severe curbs on the ability of Chinese citizens to organize and perform social functions independently of state control. They suggest that the limited influence of China’s judicial, legal, and civil institutions, organizations, and actors precludes their value as real agents for democracy. Some human rights activists advocate more rigorous methods of evaluating the effectiveness of democracy programs in China.7 Other analysts contend that foreign-funded democracy, rule of law, and civil society programs in the PRC have helped to build foundations for political change—more comprehensive laws, more professional judicial and legal personnel, more cosmopolitan and assertive non-governmental organizations, and a cadre of rights activists—and have bolstered reform-minded officials in the PRC government. Many foreign and Chinese observers note that awareness of legal rights in 3 Approximately 90% of Japanese ODA to China has come in the form of loans, according to some sources. See The Ministry of Foreign Affairs of Japan, “Overview of Official Development Assistance to China” http://www.mofa.go.jp/ policy/oda/region/e_asia/china/index.html. German aid to the PRC reportedly also has included a substantial loan component. See “As China Booms, Germany Politicians Question Continuing Aid,” Deutsch Welle, July 27, 2007. 4 European Commission: External Cooperation Programs http://ec.europa.eu/europeaid/where/asia/countrycooperation/china/china_en.htm. 5 European Union, China: Country Strategy Paper 2007-13 (Draft). 6 Fiscal Year to Date http://www.fordfound.org/grants. 7 “Funding the Rule of Law and Civil Society,” China Rights Forum, no. 3 (2003). Congressional Research Service 2 U.S.-Funded Assistance Programs in China many areas of PRC society is growing.8 Some experts add that policies that support incremental rather than fundamental change have the best chance of succeeding in the long run, through increasing “the capacity of reform-oriented individuals in China to be effective in their own work,” including those within the government and without.9 PRC civil society groups and NGOs, key targets of U.S.-funded democracy programs, have raised concerns among China’s leadership about their growing influence and foreign contacts. Many of them reportedly have experienced a tightening regulatory environment in recent years.10 Some experts argue that to be more effective, U.S.-supported civil society programs in China should be insulated as far as possible from U.S. government involvement and the vagaries of U.S.-China bilateral relations.11 and civil 4 OECD data includes funding that is not reflected in the U.S. State Department’s annual budget justification for China, such as Department of Energy and Department of Health and Human Services funding. OECD data also includes National Endowment for Democracy (NED) programs funded through congressional appropriations to NED. 5 OECD: http://stats.oecd.org/Index.aspx?DatasetCode=CRSNEW. 6 European Commission: External Cooperation Programs http://ec.europa.eu/europeaid/where/asia/countrycooperation/china/china_en.htm. 7 European Union, China: Country Strategy Paper 2007-13 (Draft). 8 Ford Foundation, 2008 Annual Report: http://www.fordfound.org/grants. Congressional Research Service 2 U.S.-Funded Assistance Programs in China institutions, organizations, and actors significantly reduces their value as real agents for democracy, and contend that the U.S. focus should be on changing the way the law is used rather than expanding existing rule of law programs. 9 Some human rights activists also advocate more rigorous methods of evaluating the effectiveness of democracy programs in China.10 Other analysts contend that foreign-funded rule of law, civil society, and democracy programs in the PRC have helped to build foundations for political change – more comprehensive laws, more professional judicial and legal personnel, more worldly and assertive NGOs or social organizations, and a cadre of human rights activists and lawyers – and have bolstered reformminded officials in the PRC government. Some experts add that policies that support incremental rather than fundamental change have the best chance of succeeding in the long run, through increasing “the capacity of reform-oriented individuals in China to be effective in their own work,” including those within the government and without.11 Many foreign and Chinese observers have noted that awareness of legal rights in many areas of PRC society is growing.12 Another study suggests that rule of law and civil society programs are especially valuable through their direct impact on local officials, social organizations, lawyers, and others.13 PRC civil society groups and social organizations, key targets of U.S.-funded democracy programs, have raised concerns among China’s leadership about their growing influence and foreign contacts. Many of them reportedly have experienced a tightening regulatory environment in recent years.14 Some experts argue that to be more effective, U.S.-supported civil society programs in China should be insulated as far as possible from U.S. government involvement and the vagaries of U.S.-China bilateral relations. 15 Program Development United States foreign assistance to the PRC primarily has supported rule of law, civil society, and democracy-related programs and assistance to Tibetan communities since 2000. Since 1999, Congress has played a leading role in funding these programs through annual foreign operations appropriations measures. The U.S. Agency for International Development (USAID) does not have an official presence or mission in the PRC, due in part to the Chinese government’s reported human rights abuses. U.S. laws that can be invoked to deny foreign assistance on human rights grounds include Sections 116 and 502B of the Foreign Assistance Act of 1961 (P.L. 87-195). In addition to democracy and Tibet-related aid, American Schools and Hospitals Abroad (ASHA) has provided support for university and hospital projects in China since 1997, while the Peace Corps has been involved in teaching English language and topics such as environmental awareness in the PRC since 1993. In 1997, President Bill Clinton and PRC President Jiang Zemin agreed In 1997, President Bill Clinton and PRC President Jiang Zemin agreed upon a U.S.-China Rule of Law Initiative, although U.S. funding for the program was not provided until 2002. In 1999, Congress began authorizing assistance (to non-governmental organizations located outside China) for the purpose of fostering democracy in the PRC (P.L. 105-277). In 2000, the act granting permanent normal trade relations (PNTR) treatment to China (P.L. 106-286) authorized programs to promote the rule of law and civil society in China. The FY2002 appropriations measure (P.L. 107-115) removed China from a list of countries prohibited from receiving U.S. indirect foreign assistance and lifted the requirement that Economic Support Funds (ESF) for democracy programs be provided only to NGOs located outside the PRC. The FY2003 appropriations measure (P.L. 108-7) continued the requirement that Tibet assistance be granted to NGOs but lifted the stipulation that they be located outside China. Major recipients of U.S. grants for China programs have included Temple University (rule of law), the International Republican Institute (village elections), the Asia Foundation (civil society), and the Bridge Fund (Tibet). The National Endowment for Democracy (NED) has played a major role in promoting democracy in China through congressional appropriations. U.S. universities 8 programs be provided only to NGOs located outside the PRC. The 9 Paul Eckert, “U.S., China Set 2011 Rights Meeting in ‘Candid’ Talks,” Reuters, May 14, 2010. “Funding the Rule of Law and Civil Society,” China Rights Forum, no. 3 (2003). 11 Paul Gewirtz, “The U.S. China Rule of Law Initiative,” William & Mary Bill of Rights Journal, Vol. 11 (2003). 12 Jamie P. Horsley, “The Rule of Law in China: Incremental Progress,” The China Balance Sheet in 2007 and Beyond, Center for Strategic and International Studies, May 2007. 9 Paul Gewirtz, “The U.S. China Rule of Law Initiative,” William & Mary Bill of Rights Journal, Vol. 11 (2003). 1013 William F. Schulz, “Strategic Persistence,” Center for American Progress, January 2009. 14 Paul Mooney, “How to Deal with NGOs—Part 1, China,” YaleGlobal Online, August 1, 2006. 1115 Gewirtz, op. cit. 10 Congressional Research Service 3 U.S.-Funded Assistance Programs in China involved in educational exchanges have included the University of Massachusetts (judiciary reform), the University of the Pacific McGeorge School of Law and American University Washington College of Law (rule of law), Vermont Law School (environmental law), and Western Kentucky University (environmental protection). Implementing partners for Tibet programs have included the Bridge Fund, the Mountain Institute, and Winrock InternationalFY2003 appropriations measure (P.L. 108-7) continued the requirement that Tibet assistance be granted to NGOs but lifted the stipulation that they be located outside China. Since 2006, Congress has appropriated Development Assistance (DA) to American educational institutions for exchange programs related to the rule of law and the environment in China. In 2007, the U.S. government began funding HIV/AIDS programs in China using Global Health and Child Survival (GHCS) account funds. Criminal justice programs funded through the International Narcotics Control and Law Enforcement (INCLE) account began in 2009. The Department of State’s East Asia and the Pacific (EAP) Bureau and Bureau of Democracy, Human Rights and Labor (DRL) have administered China programs primarily through the Human DRL’s Human Rights and Democracy Fund (ESF account). Funding has been channeled largely to U.S.-based non-governmental organizations operating in China, which in turn have provided some support to Chinese NGOs. The East Asia Regional Democracy Fund and HRDF global fund also have provided some ESF for rule of law and Tibet programs. Since 2006, Congress has appropriated Development Assistance (DA) to American educational institutions for exchange programs related to democracy, rule of law, and the environment in China. In 2007, the U.S. government began funding HIV/AIDS programs in China using Child Survival and Health (CSH) account funds. Other Restrictions on Foreign Aid Many U.S. sanctions on the PRC in response to the Tiananmen military crackdown in 1989 remain in effect, including some foreign aid-related restrictions, such as required “no” votes or abstentions by U.S. representatives to international financial institutions regarding loans to China (except those that meet basic human needs).12 Congress also has required that U.S. representatives to international financial institutions support projects in Tibet only if they do not encourage the migration and settlement of non-Tibetans (majority Han Chinese) into Tibet or the transfer of Tibetan-owned properties to non-Tibetans, which some fear may erode Tibetan culture and identity. The U.S. government suspended funding for the United Nations Population Fund (UNFPA) from 2002 through 2008 because of the UNFPA’s programs in China, where the State Department determined that coercive family planning practices had occurred. In February 2009, the Obama Administration announced that it would restore U.S. funding for the UNFPA. The Omnibus Appropriations Act, FY2009 (P.L. 111-8), allocated $50 million for the UNFPA. However, none of these funds may be used for a country program in China.13 12 Pursuant to Section 902 of the Foreign Relations Authorization Act of 1990-91 and Section 710(a) of the International Financial Institutions Act. For further information, see CRS Report RL31910, China: Economic Sanctions, by Dianne E. Rennack. 13 The “Kemp-Kasten” amendment to the FY1985 Supplemental Appropriations Act (P.L. 99-88) bans U.S. assistance to organizations that support or participate in the management of coercive family planning programs. For further information, see CRS Report RL32703, The U.N. Population Fund: Background and the U.S. Funding Debate, by Luisa Blanchfield. Congressional Research Service 4 U.S.-Funded Assistance Programs in China Figure 1. U.S. Assistance to China by Type, 2000-2008 Appropriations ($US million) 40 35 Peace Corps 30 Tibet (ESF) 25 20 Educational Exchange (DA) 15 Democracy/Tibet (ESF; ESF/HRDF) 10 Health (CSH) 5 FY 20 00 FY 01 FY 02 FY 03 FY 0 FY 4 05 FY 0 FY 6 07 FY 08 0 Year Source: U.S. Department of State Notes: FY2000-2003 democracy assistance for China included funding for Tibet; For FY2004-08, Tibet programs received special earmarked funds. FY2008-FY2009 Appropriations For FY2009, the State Department requested a total of $7 million for China with the objective of enhancing China’s capacity to “engage cooperatively, constructively, and transparently with international, regional, and U.S. institutions.”14 Major program areas include rule of law, civil society, global health, environmental issues, and Tibet. The largest funding stream in the Administration’s request was for HIV/AIDS prevention and treatment programs (CSH account). ESF was requested to support U.S.-China educational exchanges and NGO work in the areas of rule of law and good governance as well as cultural preservation, sustainable development, healthcare, and education in Tibetan communities. The State Department also funds a Department of Justice Rule of Law advisor on topics such as anti-money-laundering and intellectual property rights (INCLE account). 14 Congressional Budget Justification for Foreign Operations, FY2009. Congressional Research Service 5 U.S.-Funded Assistance Programs in China The Omnibus Appropriations Act, FY2009 (P.L. 111-8) appropriated $17 million out of the HRDF for the promotion of democracy in China.15 The measure authorized $7.3 million in ESF for NGOs to support activities that preserve cultural traditions and promote sustainable development and environmental conservation in Tibetan communities in the Tibetan Autonomous Region and other areas of China. The act also included an appropriation of $250,000 for NED programs in Tibet. In addition, $11 million in Development Assistance account funding is to be made available to American educational institutions and NGOs for programs and activities in the PRC related to democracy, rule of law, and the environment. For FY2008, the Bush Administration requested a total of $9.2 million for China, primarily CSH account funds for HIV/AIDS programs ($7.2 million).16 Economic Support Funds ($2 million) were requested to support judicial independence, rule of law programs, and the role of NGOs in Chinese society. Tibetan program areas included job skills training, public health efforts, education, and environmental conservation. The Consolidated Appropriations Act, FY2008 (P.L. 110-161) provided $15 million for democracy and rule of law programs in the PRC. The FY2008 appropriations measure also mandated $5 million from the ESF account for activities that preserve cultural traditions and promote sustainable development and environmental conservation in Tibetan communities in China, and $250,000 to NED for human rights and democracy programs related to Tibet. In addition, $10 million in Development Assistance was appropriated to American educational institutions and NGOs for programs and activities in the PRC related to democracy, rule of law, and the environment. Earthquake Relief In July 2008, the U.S. government (USAID and the Department of Defense) provided a total of $4.8 million in humanitarian relief to areas and victims affected by the May 2008 earthquake in Sichuan province that killed nearly 70,000 people. USAID’s Office of U.S. Foreign Disaster Assistance (OFDA) awarded $1.2 million to the Asia Foundation to promote rural housing reconstruction and raise public awareness about natural disasters. Other funding went to the International Federation of the Red Cross and Red Crescent Societies (IFRC) for relief supplies to the Los Angeles County and Fairfax County Fire Departments for related support. The Department of Defense provided $2.2 million for tents and emergency relief supplies.17 15 Also includes Hong Kong and Taiwan (if matching funds are made available). The bulk of the funding is expected to go to China. Since 2004, annual congressional authorizations for democracy funds to China have included Hong Kong and Taiwan. Hong Kong has received assistance for strengthening political parties ($840,000 in FY2006). Taiwan has not offered required matching funds for legal and political reform programs and hence has not received democracy grants. Taiwan has received U.S. assistance (an estimated $635,000 in FY2008) for developing its export control system and combat trafficking in persons. In 2008, Taiwan “graduated” from its need for trafficking assistance. 16 Congressional Budget Justification for Foreign Operations, FY2008. 17 Bureau for Democracy, Conflict, and Humanitarian Assistance (DCHA), Office of U.S. Foreign Disaster Assistance, China – Earthquake, Fact Sheet #6, FY2008, August 8, 2008. Congressional Research Service 6 U.S.-Funded Assistance Programs in China Table 1. Selected U.S. Assistance to China, 2000-2009 (thousand dollars) Account (program) FY00 FY01a FY02 FY03 FY04 FY05 FY06 FY07 CSH (HIV/AIDS) 4,800 GHAI 1,950 DA (educational exchange) 4,950 FY08 est. 5,000 FY09 req. 4960 5,000 9919 11,000 ESF (democracy/Tibet) ESF (HRDF— democracy)b 1,400 1,000 10,000 15,000 ESF (Tibet) 13,500 19,000 20,000 20,000 15,000 17,000 3,976 4,216 3,960 3960 4712 7,300 600 INCLEc Peace Corps (English language) 1,435 1,298 1,559 977 863 1,476 1,683 1,748 1,980 2,057 Totals 1,435 1,298 1,559 977 863 1,476 1,683 1,748 1,980 39,357 Sources: U.S. Department of State Congressional budget justifications for foreign operations; Congressional foreign operations appropriations legislation. a. In FY2001, $28 million was appropriated in order to provide compensation to China for the accidental NATO bombing of the PRC Embassy in Belgrade. b. Congressional appropriations – not specified in State Department annual budget requests for China. c. Technical assistance for combating money laundering and enforcing intellectual property rights. Foreign Operations Appropriations: Legislative History (1999-2007) FY2000-FY2003 AppropriationsHRDF), which draws from the Economic Support Fund (ESF) account. In the past decade, Congress has supported increasing support for the Democracy Fund. Appropriations for the HRDF grew from $13 million in FY2001 to an estimated $70 million in FY2010. China programs have accounted for roughly one quarter of allocations from the Democracy Fund. Democracy funding has been channeled largely to U.S.-based non-governmental organizations and educational institutions with operations or exchange programs in China, which in turn have provided some support or sub-grants to Chinese “partner NGOs.” Democracy program areas include human rights, religious freedom, freedom of expression, information, and the press, media reform, transparency, judicial independence, criminal and civil rule of law, electoral reform, public participation, labor rights, minority rights, and migrant rights. The East Asia Regional Democracy Fund and the HRDF global fund also have provided some ESF for China and Tibet programs. Because of political sensitivities, DRL does not openly disclose the names of its grant recipients in China. The National Endowment for Democracy (NED) has played a major role in promoting democracy in China through congressional appropriations. NED is a private, non-profit organization that promotes democracy around the world. The United States government established NED in 1983 and provides most of its funding. NED supports Chinese pro-democracy organizations in the United States and Hong Kong; helps to advance the rule of law, promote the rights of workers and women, and strengthen village elections in China; and assists in the development of Tibetan communities. The Endowment’s China programs have received grants through three channels: the annual foreign operations appropriation for NED (an estimated $118 million in FY2010), out of which approximately $2 million has been devoted to China programs each year since 1999; annual congressional earmarks to NED for democracy-related programs in the PRC and Tibet;16 and DRL grants to NED’s “core institutes.”17 NED began awarding grants to U.S.-based organizations supporting democracy in China in the mid-1980s and supporting significant incountry programs in the 1990s.18 Compared to the U.S. government, NED’s non-governmental 16 Congress provided special authorizations out of the Democracy Fund to NED for programs in China between 2001 and 2007 and Tibet between 2004 and 2009. 17 NED’s core institutes or grantees are: the International Republican Institute (IRI); the American Center for International Labor Solidarity (ACILS); the Center for International Private Enterprise (CIPE); and the National Democratic Institute for International Affairs (NDI). 18 Eric T. Hale, “A Quantitative and Qualitative Evaluation of the National Endowment for Democracy, 1990-1999” (Ph.D. dissertation, Louisiana State University, 2003), pp. 173-4. For a list of NED China projects, see http://www.ned.org/where-we-work/asia/china. Congressional Research Service 4 U.S.-Funded Assistance Programs in China status affords it greater ease and flexibility with which to support relatively overt democratic groups. U.S. universities and organizations involved in U.S.-funded rule of law programs include the University of Massachusetts (judiciary reform), University of the Pacific McGeorge School of Law and American University Washington College of Law (legal training), Vermont Law School (environmental law), Western Kentucky University (environmental health), and the American Bar Association (criminal justice). Implementing partners for Tibet programs include the Bridge Fund, the Mountain Institute, the Tibet Poverty Alleviation Fund, and Winrock International. The Asia Foundation’s administrative law and procedures program also receives USAID support. 19 In 1999, Temple University established the first foreign Master of Laws degree program in China. The LLM program, conducted in collaboration with Tsinghua University School of Law in Beijing, educates Chinese judges, prosecutors, government officials, law professors, and lawyers in U.S. and international legal principles. The State Department and USAID have provided roughly $12 million for Temple’s activities in China, which also include non-degree legal education, scholarly research, and curriculum development. The program has educated over 950 Chinese legal professionals, the majority of which (80%) work in the public sector, including judges, prosecutors, government officials, law professors, and NGO legal staff. “Graduates report that they are drawing on their Temple legal education as they write judicial decisions, apply rules of evidence in trial practice, draft laws for national and regional legislative bodies, and infuse their scholarship with principles of U.S. law.”20 Additional Programs The Office of American Schools and Hospitals Abroad (ASHA) of the Department of State’s Bureau for Democracy, Conflict, and Humanitarian Assistance provides grants to private and nonprofit educational and medical institutions in foreign countries. The purposes of such assistance include fostering mutual understanding, introducing foreign countries to U.S. ideas and practices in education and medicine, and promoting civil society. Since 1997, ASHA has supported programs in China, including helping to establish the Center for American Studies at Fudan University in Shanghai, supporting the Hopkins-Nanjing Center for Chinese and American Studies in Nanjing, and providing a grant to Project Hope for its efforts at the Shanghai Children’s Medical Center. The measure granting permanent normal trade relations (PNTR) status to China (P.L. 106-286) authorized the Department of Labor to establish a program to promote worker rights and related rule of law training. In 2002, the Bush Administration released two grants totaling $6.4 million for labor programs in China. A grant of $4.1 million was awarded to a consortium of Worldwide Strategies, Inc., the Asia Foundation, and the National Committee on United States-China Relations to conduct education, training, and technical assistance to help improve labor laws and to promote greater awareness of labor laws among workers and employers as well as to provide legal aid services to women and migrant workers. The Department of Labor also awarded a $2.3 19 Asia Foundation: http://www.usaid.gov/locations/asia/countries/china/. Temple University Beasley School of Law, Summary of Achievements (March 2010); Temple University Beasley School of Law, Rule of Law Projects in China: 2007-08 Annual Report; Adelaide Ferguson, “Temple’s Rule of Law Programs in China” (March 2006); http://www.law.temple.edu/servlet/RetrievePage?site=TempleLaw&page= China+Program. 20 Congressional Research Service 5 U.S.-Funded Assistance Programs in China million grant to the National Safety Council to help improve mine safety and health conditions in China. Restrictions on Foreign Aid Some U.S. sanctions on the PRC in response to the Tiananmen military crackdown in 1989 remain in effect, including required “no” votes or abstentions by U.S. representatives to international financial institutions on loans to China (except those that meet basic human needs).21 Congress also has required that U.S. representatives to international financial institutions support projects in Tibet only if they do not encourage the migration and settlement of non-Tibetans (majority Han Chinese) into Tibet or the transfer of Tibetan-owned properties to non-Tibetans, which some fear may erode Tibetan culture and identity. Furthermore, U.S. laws that can be invoked to deny foreign assistance on human rights grounds include Sections 116 and 502B (security assistance) of the Foreign Assistance Act of 1961 (P.L. 87-195). The U.S. government suspended funding for the United Nations Population Fund (UNFPA) from 2002 through 2008 because of the UNFPA’s programs in China, where the State Department determined that coercive family planning practices had occurred. In February 2009, the Obama Administration announced that it would restore U.S. funding for the UNFPA. The Consolidated Appropriations Act, FY2009 (P.L. 111-117) authorized $55 million for the UNFPA. However, none of these funds may be used for a country program in China.22 Foreign Operations Appropriations, FY2008-FY2011 The Consolidated Appropriations Act, FY2008 (P.L. 110-161) provided $15 million (through the HRDF) for democracy and rule of law programs in the PRC. 23 The FY2008 appropriations measure also mandated $5 million from the ESF account for activities that preserve cultural traditions and promote sustainable development and environmental conservation in Tibetan communities in China, and $250,000 to NED for human rights and democracy programs related to Tibet. In addition, $10 million in Development Assistance was appropriated to American educational institutions and NGOs for programs and activities in the PRC related to democracy, rule of law, and the environment. China received approximately $7 million in HIV/AIDS program support in FY2008. 21 Pursuant to Section 902 of the Foreign Relations Authorization Act of 1990-91 and Section 710(a) of the International Financial Institutions Act. For further information, see CRS Report RL31910, China: Economic Sanctions, by Dianne E. Rennack. 22 The “Kemp-Kasten” amendment to the FY1985 Supplemental Appropriations Act (P.L. 99-88) bans U.S. assistance to organizations that support or participate in the management of coercive family planning programs. For further information, see CRS Report RL32703, The U.N. Population Fund: Background and the U.S. Funding Debate, by Luisa Blanchfield. 23 Since 2004, annual congressional authorizations for democracy funds to China have included Hong Kong and Taiwan (if matching funds are provided). Hong Kong has received assistance for strengthening political parties ($840,000 in FY2006). Taiwan has not offered matching funds for legal and political reform programs and hence has not received democracy grants. Congressional Research Service 6 U.S.-Funded Assistance Programs in China The Omnibus Appropriations Act, FY2009 Earthquake Relief (P.L. 111-8) appropriated $17 million for the In July 2008, the U.S. government (USAID and the promotion of democracy in China. The Department of Defense) provided a total of $4.8 million measure authorized $7.3 million in ESF for in humanitarian relief to areas and victims affected by the NGOs to support activities that preserve May 2008 earthquake in Sichuan province that killed nearly 70,000 people. USAID’s Office of U.S. Foreign cultural traditions and promote sustainable Disaster Assistance awarded $1.2 million to the Asia development and environmental conservation Foundation to promote rural housing reconstruction and in Tibetan communities in the Tibet raise public awareness about natural disasters. Other Autonomous Region and other areas of China. funding went to the International Federation of the Red The measure also included an appropriation of Cross and Red Crescent Societies (IFRC) for relief supplies and to the Los Angeles County and Fairfax $250,000 for NED programs in Tibet. In County Fire Departments for related support. The addition, $11 million in Development Department of Defense provided $2.2 million for tents Assistance account funding was made and emergency relief supplies.24 available to American educational institutions and NGOs for programs and activities in the PRC related to democracy, rule of law, and the environment. China received $7.3 million for HIV/AIDS programs in 2009. The United States government established a resident Legal Advisor at the U.S. Embassy in Beijing aimed at promoting criminal law reform, professionalizing the criminal justice system, and enhancing U.S.-China law enforcement cooperation, using $600,000 in INCLE account funds. In FY2010, democracy programs in China are to receive $17 million out of the HRDF. In addition, the Consolidated Appropriations Act, FY2010 (P.L. 111-117) provided $7.4 million for NGOs to support activities that preserve cultural traditions and promote sustainable development and environmental conservation in Tibet and Tibetan communities in the PRC. The act appropriated $12 million in Development Assistance to U.S. educational institutions and nongovernmental organizations for programs and activities related to governance, the rule of law, and the environment in China.25 INCLE funding for criminal justice and HIV/AIDS programs are to total $800,000 and $7 million, respectively, in 2010. For FY2011, the State Department requested $5 million out of the ESF account for Tibet programs, GHCS funding of $7 million for HIV/AIDS efforts, and $850,000 for INCLE programs. According to the FY2011 Congressional Budget Justification, human rights and governance remain “high priorities” for the United States. “U.S. assistance helps foster the development of civil society, and increases cooperation on global health and environmental issues of mutual concern.”26 24 Bureau for Democracy, Conflict, and Humanitarian Assistance (DCHA), Office of U.S. Foreign Disaster Assistance, China – Earthquake, Fact Sheet #6, FY2008, August 8, 2008. 25 H.Rept. 111-366, Sec. 7071(a). 26 Congressional Budget Justification for Foreign Operations, FY2011. Congressional Research Service 7 Table 1. Selected U.S. Assistance to China, FY2000-FY2010 (thousand U.S. dollars) Fiscal Year/ Account (Program) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Totals GHCS USAID (HIV/AIDS) 4,800 4,960 4,000 4,000 17,760 GHAI State (HIV/AIDS) 1,950 2,000 3,308 3,000 10,258 4,950 5,000 9,919 11,000 12,000 42,869 DA (Rule of Law) 1,000 0 10,000 15,000 13,500 19,000 20,000 20,000 15,000 17,000 17,000 147,500 ESF (Tibet) 0 0 0 0 3,976 4,216 3,960 3,960 4,960 7,300 7,400 35,772 INCLE 0 0 0 0 0 0 0 0 600 800 1400 ESF (Democracy Programs) a Peace Corps b 1,435 1,298 1,559 977 863 1,476 1,683 1,748 1,980 2,057 2,718 17,794 Totals 2,435 1,298 11,559 15,977 18,339 24,692 30,593 37,458 38,819 45,265 46,918 273,353 Sources: U.S. Department of State Congressional budget justifications for foreign operations; Congressional foreign operations appropriations legislation. a. Congressional appropriations – not specified in State Department annual budget requests for China. b. The Peace Corps has been involved in teaching English language and environmental awareness in China since 1993. CRS-8 U.S.-Funded Assistance Programs in China Legislative History: Foreign Operations Appropriations, FY2000-FY2007 FY2000-FY2003 The Consolidated Appropriations Act for FY2000 (P.L. 106-113) provided $1 million for U.S.based NGOs (to preserve cultural traditions and promote sustainable development and environmental conservation) in Tibet as well as $1 million to support research about China, and authorized ESF for NGOs to promote democracy in the PRC. For FY2001 (P.L. 106-429), Congress authorized up to $2 million for Tibet. In FY2002 (P.L. 107-115), Congress made available $10 million for assistance for activities to support democracy, human rights, and the rule of law in China, including up to $3 million for Tibet. The FY2003 appropriations measure (P.L. 108-7), provided $15 million for democracy-related programs in China, including up to $3 million for Tibet and $3 million for the National Endowment for Democracy (NED). FY2004-FY2007 Appropriations In 2004, the Bureau of Democracy, Human Rights and Labor became the principal administrator of China democracy programs. The FY2004 Consolidated Appropriations Act (P.L. 108-199) Congressional Research Service 7 U.S.-Funded Assistance Programs in China made available $13.5 million for China, Hong Kong, and Taiwan, including $3 million for NED. Appropriations for FY2004 provided a special earmark for Tibet ($4 million). In FY2005 (P.L. 108-447), Congress provided $19 million for China, including $4 million for NED, and authorized $4 million for Tibet and $250,000 for NED in Tibet. In addition, the FY2005 appropriations measure authorized the use of Development Assistance for American universities to conduct U.S.-China educational exchange programs related to democracy, rule of law, and the environment. The conference agreement (H.Rept. 109-265) on the FY2006 foreign operations appropriations bill (H.R. 3057, signed into law as P.L. 109-102) extended $20 million for China. For Tibet, P.L. 109-102 authorized $4 million for Tibet and Tibetan communities in China and $250,000 to NED in Tibet. The FY2006 appropriations measure also provided $5 million in Development Assistance to American educational institutions for legal and environmental programs in the PRC. Because of the late enactment of the Continuing Appropriations Resolution for FY2007 (P.L. 110-5), funding levels for many U.S. foreign aid programs for the year were not specified but continued at or near FY2006 levels. Key Actors and Programs Bureau of Democracy, Human Rights, and Labor (DRL) (Department of State) The Bureau’s mission is to lead U.S. efforts to “promote democracy18, protect human rights19 and international religious freedom20, and advance labor rights21 globally.” In the past decade, Congress has supported increased funding for DRL’s Democracy Fund. Appropriations for the HRDF grew from $13 million in FY2001 to an estimated $74 million in FY2009. China programs account for roughly one quarter of allocations from the Democracy Fund. Most DRL grants to China go to U.S.-based NGOs and educational institutions, while some sub-grants go to PRC “partner NGOs.”22 Office of American Schools and Hospitals Abroad (Department of State) The Office of American Schools and Hospitals Abroad (ASHA) of the Department of State’s Bureau for Democracy, Conflict, and Humanitarian Assistance provides grants to private and nonprofit educational and medical institutions in foreign countries. The purposes of such assistance include fostering mutual understanding, introducing foreign countries to U.S. ideas and practices in education and medicine, and promoting civil societies. Since 1997, ASHA has supported programs in China, including helping to establish the Center for American Studies at Fudan University in Shanghai, supporting the Hopkins-Nanjing Center for Chinese and American 18 See http://www.state.gov/g/drl/democ/. See http://www.state.gov/g/drl/hr/. 20 See http://www.state.gov/g/drl/irf/. 21 See http://www.state.gov/g/drl/lbr/. 22 U.S. Department of State, Bureau of Democracy, Human Rights, and Labor, HRDF Projects, 1998-Present. Because of political sensitivities, DRL does not disclose the names of its grant recipients. 19 Congressional Research Service 8 U.S.-Funded Assistance Programs in China Studies in Nanjing, and providing a grant to Project Hope for its efforts at the Shanghai Children’s Medical Center. Department of Labor The measure granting permanent normal trade relations (PNTR) status to China (P.L. 106-286) authorized the Department of Labor to establish a program to promote worker rights and related rule of law training. In 2002, the Bush Administration released two grants totaling $6.4 million for labor programs in China. A grant of $4.1 million was awarded to a consortium of Worldwide Strategies, Inc., the Asia Foundation, and the National Committee on United States-China Relations to conduct education, training, and technical assistance to help improve labor laws and to promote greater awareness of labor laws among workers and employers as well as to provide legal aid services to women and migrant workers. The Department of Labor also awarded a $2.3 million grant to the National Safety Council to help improve mine safety and health conditions in China. National Endowment for Democracy The National Endowment for Democracy (NED) is a private, non-profit organization that promotes democracy around the world. NED supports Chinese pro-democracy organizations in the United States and Hong Kong, helps to advance the rule of law, promote the rights of workers and women, and strengthen village elections in China, and assists in the development of Tibetan communities. The United States government established NED in 1983 and provides most of its funding. The Endowment’s China programs have received grants through three channels: the annual foreign operations appropriation for NED (an estimated $99 million in FY2008), out of which approximately $2 million has been devoted to China programs each year since 1999; annual congressional earmarks for democracy-related programs in the PRC and Tibet;23 and DRL grants to NED’s “core institutes.”24 During the FY1999-FY2003 period, about 38% of U.S. government funding for democracy-related programs in China was allocated through the Endowment. 25 NED began awarding grants to U.S.-based organizations supporting democracy in China in the mid-1980s and supporting significant in-country programs in the 1990s.26 Compared to the U.S. government, NED’s non-governmental status affords it greater ease and flexibility with which to support relatively overt democratic groups. 23 Congress has appropriated annual earmarks to NED out of the Democracy Fund for human rights and democracy programs in China between 2001 and 2007 ($2.9 million FY2007) and in Tibet since 2004 (an estimated $250,000 in FY2009). 24 NED’s core institutes or grantees are: the International Republican Institute (IRI); the American Center for International Labor Solidarity (ACILS); the Center for International Private Enterprise (CIPE); and the National Democratic Institute for International Affairs (NDI). 25 General Accounting Office, “Foreign Assistance: U.S. Funding for Democracy-Related Programs,” February 2004. 26 Eric T. Hale, “A Quantitative and Qualitative Evaluation of the National Endowment for Democracy, 1990-1999” (Ph.D. dissertation, Louisiana State University, 2003), pp. 173-4. For a listing of NED China projects, see National Endowment for Democracy, Grants—Asia Programs http://www.ned.org/grants/07programs/grants-asia07.html#china. Congressional Research Service 9 U.S.-Funded Assistance Programs in China Temple University In 1999, Temple University established the first foreign Master of Laws degree program in China. The LLM program, conducted in collaboration with Tsinghua University School of Law in Beijing, educates Chinese judges, prosecutors, government officials, law professors, and lawyers in U.S. and international legal principles. The State Department and USAID have provided roughly $12 million for Temple’s activities in China, which also include non-degree legal education, scholarly research, and curriculum development.27 The program has educated nearly 800 Chinese legal professionals, the majority of which (78%) work in the public sector. “Graduates report that they are drawing on their Temple legal education as they write judicial decisions, apply rules of evidence in trial practice, draft laws for national and regional legislative bodies, and infuse their scholarship with principles of U.S. law.”28 Acronyms USAID: United States Agency for International Development HRDF: Human Rights and Democracy Fund (Democracy Fund) DRL: Bureau of Democracy, Human Rights and Labor NGO: Non-governmental Organization NED: National Endowment for Democracy CSH: Child Survival and Health DA: Development Assistance ESF: Economic Support Fund GHAI: Global HIV/AIDS Initiative INCLE: International Narcotics Control and Law Enforcement Author Contact Information Thomas Lum Specialist in Asian Affairs tlum@crs.loc.gov, 7-7616 27 DRL has supported several U.S. universities conducting rule of law programs in China. According to a database compiled by the National Committee on United States-China Relations earlier this decade, approximately 150 U.S. law schools conduct programs in China, mostly offering courses and short-term programs for American students to study PRC law; about one dozen U.S. law schools have developed exchange programs. 28 Temple University Beasley School of Law, Rule of Law Projects in China: 2007-08 Annual Report; Adelaide Ferguson, “Temple’s Rule of Law Programs in China,” Temple University Beasley School of Law, March 2006. In 2007, NGOs in China began to receive assistance for HIV/AIDS prevention, treatment, and control efforts ($6.75 million). Congressional Research Service 9 U.S.-Funded Assistance Programs in China Acronyms CSH: Child Survival and Health DA: Development Assistance DRL: Bureau of Democracy, Human Rights and Labor ESF: Economic Support Fund GHCS: Global Health and Child Survival GHAI: Global HIV/AIDS Initiative HRDF: Human Rights and Democracy Fund (Democracy Fund) INCLE: International Narcotics Control and Law Enforcement NED: National Endowment for Democracy NGO: Non-governmental Organization USAID: United States Agency for International Development Author Contact Information Thomas Lum Specialist in Asian Affairs tlum@crs.loc.gov, 7-7616 Congressional Research Service 10