As the lead U.S. foreign affairs agency, the U.S. Department of State has over 265 diplomatic locations around the world, including embassies, consulates, and missions to international organizations. The Department also maintains diplomatic relations with most countries in the world, as well as with many international organizations.

The Secretary of State, the ranking member of the Cabinet and fourth in line of presidential succession, is the President's principal advisor on foreign policy and the person chiefly responsible for representing the United States abroad. The primary goal of the Secretary of State and the U.S. Department of State is to shape a freer, more secure, and more prosperous world through formulating and implementing the President's foreign policy, while supporting and protecting American interests abroad.

On September 15, 1789, Congress passed "An Act to provide for the safe keeping of the Acts, Records, and Seal of the United States, and for other purposes." This law changed the name of the Department of Foreign Affairs to the Department of State because certain domestic duties were assigned to the agency. These included:

• Receipt, publication, distribution, and preservation of the laws of the United States;
• Preparation, sealing, and recording of the commissions of Presidential appointees;
• Preparation and authentication of copies of records and authentication of copies under the Department's seal;
• Custody of the Great Seal of the United States;
• Custody of the records of the former Secretary of the Continental Congress, except for those of the Treasury and War Departments.

Other domestic duties that the Department was responsible for at various times included issuance of patents on inventions, publication of the census returns, management of the mint, control of copyrights, and regulation of immigration. Most domestic functions have been transferred to other agencies. Those that remain in the Department are: storage and use of the Great Seal, performance of protocol functions for the White House, drafting of certain Presidential proclamations, and replies to public inquiries.

Please visit the Department of State's Office of the Historian page for more information.

The Department of State and USAID’s foreign assistance budgets are requested and appropriated jointly. The funds for State and USAID are not disaggregated at the request stage of the funding process. Agency- specific data for State and USAID will be available at the Obligated and Spent phases of the funding process, and for USAID are available at Where Does USAID’s Money Go? and Foreign Assistance Fast Facts.

The U.S. Agency for International Development (USAID) is an independent federal government agency whose mission is to advance broad-based economic growth, democracy and human progress around the world.

Since its inception in 1961, USAID has carried out U.S. foreign policy by promoting broad-scale human progress in the developing world, at the same time it expands stable, free societies, creates markets and trade partners for the United States, and fosters good will abroad.

For more information see This is USAID.

The Department of State and USAID’s foreign assistance budgets are requested and appropriated jointly. The funds for State and USAID are then disaggregated at the obligation and spent stages of the funding process when the appropriated funds are allocated to Agency-specific programs and activities.

Following the success of the reconstruction of Europe after World War II through the Marshall Plan and the Truman Administration's Point Four Program -- the 1950 program to engage in technically-based international economic development -- President John F. Kennedy signed the Foreign Assistance Act into law in 1961 and USAID was created by executive order. Since that time, USAID has been the principal U.S. agency to extend assistance to countries recovering from disaster, trying to escape poverty, and engaging in democratic reforms.

Please visit USAID History for more information.

The Millennium Challenge Corporation (MCC) is an innovative and independent U.S. foreign aid agency that is helping lead the fight against global poverty.

Created by the U.S. Congress in January 2004 with strong bipartisan support, MCC is changing the conversation on how best to deliver smart U.S. foreign assistance by focusing on good policies, country ownership, and results.

MCC provides these well-performing countries with large-scale grants to fund country-led solutions for reducing poverty through sustainable economic growth. MCC grants complement other U.S. and international development programs. There are two primary types of MCC grants: compacts and threshold programs.

• Compacts are large, five-year grants for countries that pass MCC’s eligibility criteria.
• Threshold programs are smaller grants awarded to countries that come close to passing these criteria and are firmly committed to improving their policy performance.

MCC is managed by a chief executive officer, who is part of the nine-member Board of Directors. The Secretary of State, the Secretary of the Treasury, the U.S. Trade Representative, and the USAID Administrator serve on the board along with four private sector representatives.

MCC is a prime example of smart U.S. Government assistance in action, benefiting both developing countries and U.S. taxpayers through:

• Competitive selection: Before a country can become eligible to receive assistance, MCC’s Board examines its performance on 17 independent and transparent policy indicators and selects compact-eligible countries based on policy performance.
• Country-led solutions: MCC requires selected countries to identify their priorities for achieving sustainable economic growth and poverty reduction. Countries develop their MCC proposals in broad consultation within their society. MCC teams then work in close partnership to help countries refine a program.
• Country-led implementation: MCC administers the Millennium Challenge Account (MCA). When a country is awarded a compact, it sets up its own local MCA accountable entity to manage and oversee all aspects of implementation. Monitoring of funds is rigorous and transparent, often through independent fiscal agents.

MCC has approved over $7.4 billion in compact and threshold programs worldwide that support country-determined projects in such sectors as:

• agriculture and irrigation,
• transportation (roads, bridges, ports),
• water supply and sanitation,
• access to health,
• finance and enterprise development,
• anticorruption initiatives,
• land rights and access,
• access to education.

The aggressive implementation of compacts and threshold programs is promoting growth opportunities, opening markets, raising the standard of living, and creating a more prosperous future for some of the world’s poorest people:

• More than 87,000 farmers have been trained and more than 12,000 hectares of land are under production.
• More than 3,362 kilometers of roads are under design, and road construction is underway.
• Over $29 million disbursed in agricultural loans.

MCC’s planning process begins with determining whether a country is eligible to enter into a multi-year threshold or compact program (see glossary for definitions). MCC’s selection process takes into consideration the number of countries meeting eligibility criteria and follows a four step process: identify candidate countries; publish criteria and methodology process; issue country scorecards; and select countries.

The Treasury Department is the executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States. The Department is responsible for a wide range of activities such as advising the President on economic and financial issues, encouraging sustainable economic growth, and fostering improved governance in financial institutions. The Department works with other federal agencies, foreign governments, and international financial institutions to encourage global economic growth, raise standards of living, and to the extent possible, predict and prevent economic and financial crises. Through its role within the international financial institutions, Treasury supports projects to curb food insecurity and environmental degradation, to build regional infrastructure projects, and to alleviate poverty. The Treasury Department also performs a critical and far-reaching role in enhancing national security by implementing economic sanctions against foreign threats to the U.S., identifying and targeting the financial support networks of national security threats, and improving the safeguards of our financial systems.

The Treasury Department was formally established as an executive department by the First Congress of the United States in 1789, to manage government finances. However, even before the formal establishment of the Department, functions such as administering the revolutionary government’s finances and then managing the finances of the new nation were being carried out.

Please visit the Department of the Treasury’s History Page for more information.

The United States is a member of several multilateral development institutions, including the:

• African Development Bank
• Asian Development Bank
• European Bank for Reconstruction and Development
• Inter-American Development Bank
• International Fund for Agricultural Development
• North American Development Bank
• World Bank

The multilateral development institutions are owned by member countries and provide financial and technical assistance to emerging markets and developing countries. The United States is the largest shareholder in the World Bank and Inter-American Development Bank, the co-largest shareholder (with Japan) at the Asian Development Bank, and the largest non-regional shareholder of the European Bank for Reconstruction and Development and the African Development Bank.

In the United States Government, Treasury is charged with leading the United States’ engagement in the multilateral development institutions. For the five largest institutions, the United States appoints an Executive Director (USED), who is based at the institution and represents U.S. interests. Treasury works closely with the USEDs and a wide-ranging interagency group on development institution issues, with the Department of State and USAID playing important roles.

Most of the multilateral development institutions have two financing facilities, which are frequently referred to as “windows,” from which they make loans and provide grants:

• The “soft loan” window is for concessional lending that provides loans on highly favorable terms (e.g., extremely low or no interest, long repayment periods) or grants to countries that have very low per-capita income levels or are unable to borrow from private markets. These are the “soft loan” or concessional windows for each multilateral development institution:
  • African Development Fund (African Development Bank)
  • Asian Development Fund (Asian Development Bank)
  • Fund for Special Operations (Inter-American Development Bank)
  • International Development Association (World Bank)

Because the European Bank for Reconstruction and Development is private sector-oriented, it does not have a “soft loan” window.

• The “hard loan” window is for non-concessional lending that provides loans to middle-income countries, such as Colombia and Botswana, and some creditworthy low-income countries, such as Indonesia and Nigeria, at market-based interest rates. These are the “hard loan” or non-concessional windows for each multilateral development institution:
  • Asian Development Bank
  • European Bank for Reconstruction and Development
  • Inter-American Development Bank
  • The International Bank for Reconstruction and Development (World Bank)

Countries are referred to as “shareholders” in an MDB and hold a certain percentage of shares based on their contributions. At times, shareholders provide new funding to support the hard loan or soft loan windows. This funding can take three forms:

• Capital replenishments
• General capital increases
• Selective capital increases

• Capital Replenishments: Because financing for the “soft loan” windows is provided on such generous terms to the very poorest countries, concessional funds need to be replenished every three to four years.
• 
  
• General Capital Increases: Under a general capital increase (GCI), MDB shareholder governments agree to increase capital to support the MDBs “hard loan” windows by purchasing additional shares in the institution. Unlike replenishments, GCIs happen infrequently because these windows are largely self-financing. Periodically however, MDBs will seek to bolster their capital in order to increase or sustain lending levels.
  
  The financing arrangements for GCIs are unique. Unlike replenishments, only a small portion of the total commitment is paid directly to an MDB. This portion is called “paid-in” capital, and typically ranges from 5-10 percent of the total increase. The pay-in period often ranges significantly (e.g., from three to eight years).
  
  The remainder of the commitment is made in the form of “callable capital.” Callable capital represents a pledge made by shareholders, but there is no actual transfer of funds. These commitments are meaningful because they enable the MDBs to borrow against them, and, in turn, lend to borrowers at rates lower than what they could obtain in the markets. An MDB can only seek the transfer of callable capital to its own accounts in the unlikely event that it becomes unable to access private capital markets or use its own resources to cover obligations on its own loans (i.e., funds borrowed on the market) or on loans it has guaranteed. No MDB has ever sought such a transfer of callable capital.
• 
  
• Selective Capital Increases: Selective capital increases (SCI) have not been used as a fundraising vehicle, but instead to allocate new shares to eligible members based on economic weight, financial contributions and development contributions. An SCI is a means of realigning shareholding to alter an MDB’s decision making. Unlike a GCI, where shares are allocated to members in proportion to their existing shareholding, SCI realignment is done on a non-proportional basis and can be used to help better reflect global trends and ensure that the poorest countries have a voice.

Negotiations for new capital are not limited to questions of financing needs. In fact, the United States has used the opportunity created by capital increase negotiations to pursue a robust agenda for new policy commitments from the MDB and other shareholders. The United States has consistently used its leadership position to advocate for new initiatives designed to strengthen development effectiveness. Typically, Treasury focuses on policies to strengthen transparency, safeguards, governance, accountability, and results. Recently, Treasury has also emphasized the need for policies to strengthen fiscal discipline within the MDBs and to protect capital. In addition, Treasury has successfully pressed for MDBs to transfer an increasing share of profits from the hard loan windows to the soft loan windows that support the poorest countries. These transfers achieve two important objectives: they help the MDBs maintain their focus on the neediest borrowers and they reduce the financial burden on shareholders.

• General Capital Increases (GCIs): When a shareholder fails to purchase the shares that it committed to buy in the capital increase negotiations, the relative shareholding of that country can become diluted and its voting power in the institution may decrease.
• 
  
• Replenishments: When a country does not provide the full amount of its commitment on time, it deprives borrowing countries of resources and encourages other countries to scale back their commitments and withhold their contributions. This has a particularly significant impact in the institutions that provide support for the poorest countries (International Development Association, the Asian Development Fund, and the African Development Fund).

The mission of the U.S. Department of the Treasury's Office of Technical Assistance (OTA) is to support the development of strong financial sectors and sound public financial management in countries where both assistance is needed and there is a strong commitment to reform.

Since its creation in 1990, OTA has helped many countries develop and implement market-based financial policies and management practices that support growing economies and stable democracies. Although OTA focuses on the public sector, the benefits of improved public financial management serve the wider community, including citizens, private enterprise, and other interests in the economy at large. A government that manages the public purse with integrity and effectiveness not only delivers essential services better, it also builds credibility with its citizens and throughout the world.

OTA expert advisors work directly with their counterparts in finance ministries, central banks, tax departments and other public sector financial institutions. Assistance may be provided on a sustained basis by resident advisors or by intermittent advisors who travel overseas for short-term assignments.

For more information visit www.TreasuryOTA.us.

The Department of Defense (DOD) is the successor agency to the National Military Establishment created by the National Security Act of 1947 (50 U.S.C. 401). It was established as an executive department of the Government by the National Security Act Amendments of 1949 with the Secretary of Defense as its head (5 U.S.C. 101). Since that time, many legislative and administrative changes have occurred, evolving the Department into the structure under which it currently operates.

The mission of the Department of Defense is to provide the military forces needed to deter war and to protect the security of our country. The department's headquarters is at the Pentagon.

The Department is also the largest employer in the world with more than 3.2 million servicemen and servicewomen, plus the civilians that support them.

Under the President, who is also Commander in Chief, the Secretary of Defense exercises authority, direction, and control over the Department, which includes the separately organized military departments of Army, Navy, and Air Force.

Currently the Dashboard includes preliminary data for Title 10 Security Sector Assistance (SSA) programs. Both Title 10 and Title 22 refer to sections of The Code of Laws of the United States of America, or United States Code (U.S.C.), which is the backbone of US legislation, comprised of all general and permanent federal laws.

Title 10, titled “Armed Forces,” governs the form, function, duties, and responsibilities of all US Armed Forces: Army, Navy, Air Force, Marine Corps, and Coast Guard, as well as the Reserves. Title 10 is organized into five subtitles and 1,805 chapters. Each subtitle includes provisions on force structure, personnel, training and education, and service, supply, and procurement. Title 22, titled “Foreign Relations and Intercourse,” governs how the US conducts its foreign diplomatic relations and includes provisions on the Department of State, foreign assistance, and public diplomacy efforts.

The principal goals of Security Sector Assistance (SSA) are to:

• Help partner nations build sustainable capacity to address common security challenges, specifically to: disrupt and defeat transnational threats; sustain legitimate and effective public safety, security, and justice sector institutions; support legitimate self-defense; contribute to U.S. or partner military operations which may have urgent requirements; maintain control of their territory and jurisdictional waters including air, land and sea borders; help indigenous forces assume greater responsibility for operations where U.S. military forces are present.
• Promote partner support for U.S. interests, through cooperation on national, regional and global priorities, including, but not limited to, such areas as: military access to airspace an basing rights; improved interoperability and training opportunities; an cooperation on law enforcement. Counterterrorism, counternarcotics, combating organized crime and arms trafficking, countering the proliferation of weapons of mass destruction, terrorism, intelligence, peacekeeping, and humanitarian efforts.
• Promote universal values, such as good governance, civilian oversight of security forces, rule of law, transparency, accountability, delivery of fair and effective justice, and respect for human rights.
• Strengthen collective security and multinational defense arrangements and organizations, including by helping to build the capacity of troop-and-police-contributing nations to United Nations and other multilateral peacekeeping missions, as well as through regional exercises, expert exchanges, and coordination of regional intelligence and law enforcement information exchanges.

DOD is responsible for ensuring U.S. defense strategy and policy priorities are closely synchronized with Security Sector Assistance (SSA) efforts, especially where a key objective is to strengthen the capacity and willingness of foreign security forces to operate alongside of, in lieu of, or in support of U.S. forces. In these cases, DOD may provide assistance in coordination with the Department of State. DOD plays a critical role in strategic planning, assessment, program design, and implementing SSA programs, and supports SSA interagency processes by providing relevant expertise and information on U.S. national defense objectives.

At the highest level, planning for and prioritization of DoD activities are informed by national-level guidance like the national security strategy and various DoD regional and functional strategies. The State Department and other civilian agencies are deeply involved in setting these objectives so that DoD’s efforts are consistent with U.S. foreign policy goals and complementary of broader U.S. foreign assistance programs. Whether DoD is shaping the security environment in a region to prevent conflict, planning for a contingency, or conducting operations, partnerships play a critical role, which permeates all facets of our defense strategy.