Administration's proposed budget slashes aid to Ukraine and Russia

WASHINGTON - The Bush administration has proposed cutting U.S. aid to Ukraine by more than 40 percent for the next fiscal year. The news came in a budget request released on February 3 that envisions a budget of $2.23 trillion, with a projected deficit of $307 million.

In accordance with the budget proposal, aid to Ukraine will be reduced from $155 million to $94 million for Fiscal Year 2004, which begins on October 1. Aid to Russia will be reduced by more than 50 percent, from $148 million to $73 million.

Overall aid to states that once were part of the Soviet Union will be reduced from $755 million in FY 2003 to $576 for FY 2004 - a 24 percent cut. That foreign aid is delivered under provisions of the FREEDOM Support Act.

Reuters reported that "The reduction for Ukraine is especially steep because of U.S. displeasure with President Leonid Kuchma, who Washington suspects of selling an air defense system to Iraq." The news agency cited an unnamed U.S. official who said the cuts were driven by the Office of Management and Budget in the White House and, in the case of a country like Ukraine, it was harder to argue in favor of maintaining assistance at current levels.

"A State Department review of policy toward Ukraine has concluded that the United States should divert aid money from the government toward non-governmental organizations," Reuters reported.

The only former Soviet republics that can expect more U.S. foreign aid are the Central Asian states that have played a role in the U.S. campaign against the Taliban in Afghanistan and Al Qaeda.

The State Department is seeking $42 million for Uzbekistan in FY 2004, (up from $31.5 million in the 2003 budget); $40 million for Kyrgyzstan, (which was allocated $36 million in 2003) and $35 million for Tajikistan ($22.5 million in 2003).

Radios face severe cuts

Related cuts are being made in the budgets of U.S. international broadcasting, with the broadcasts targeting Eastern and Central Europe most severely affected. Meanwhile, programming aimed at the Mideast and Southeast Asia will see increases in funding.

The Bush administration's 2004 budget request to Congress includes $563.5 million for the Broadcasting Board of Governors (BBG), which oversees all nonmilitary U.S. international broadcasting. An $8.8 million reduction in funding will eliminate broadcasting in nine languages and reduce others. Staff reductions include 36 positions at Voice of America (VOA) and 46 at Radio Free Europe/Radio Liberty (RFE/RL).

VOA's Ukrainian radio is to be reduced from broadcasting two hours daily to one hour, and three positions will be eliminated. Cuts will be made also to the Armenian service.

VOA would no longer broadcast in Bulgarian, Czech, Estonian, Hungarian, Latvian, Lithuanian, Polish, Slovene, Slovak and Romanian.

Similarly, RFE/RL would no longer broadcast in Bulgarian, Croatian, Estonian, Latvian, Lithuanian and Slovak. RFE/RL Romanian broadcasting to Romania will be eliminated, but RFE/RL Romanian broadcasting targeted at Moldova will continue.

In addition, RFE/RL's South Slavic Service will be reduced through the elimination of all Croatian broadcasting, and RFE/RL will reduce operational costs of its Armenian, Georgian, Serbian and Ukrainian services.

Still other cuts are to be made in the management and administration of the international radios.

Indonesian programming at VOA is to be doubled from two and a half to five hours daily, with TV broadcasts to be increased to five hours per week. A sum of $3.4 million has been budgeted for this expansion.

In addition, $30 million is allocated for initiation of a new Arabic-language television network that is seen as reaching vast and critically important audiences in that region.

Increased funding for new initiatives

It should be noted that, although the State Department budget calls for increases in funding of $2.9 billion, or 11 percent, for a total of $28.5 billion, the increase is due to new initiatives, such as aid to poor countries to fight corruption and promote economic and political freedoms; funds to combat AIDS, particularly in Africa and the Caribbean; emergency food assistance; and funds to promote democratic institutions in Arab countries.

The increases come at the expense of programs to aid the new independent states of the former Soviet Union, as well as international peacekeeping operations.

Copyright © The Ukrainian Weekly, February 9, 2003, No. 6, Vol. LXXI

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