Former Soviet Union

A February 1995 GAO report indicated (GAO/NSIAD-95-10) that the executive branch lacked an effective coordination mechanism for U.S. bilateral programs designed to help the newly independent states of the former Soviet Union transform their centrally controlled economies into market-based economies and to establish more democratic governments. Specifically, GAO found that the State Department Coordinator's authority was weak and that the U.S. Agency for International Development and other agencies were often embroiled in disputes about implementation of their programs. Since then, the Coordinator's role has been expanded to include oversight of all U.S. government bilateral programs in the former Soviet Union, and his authority to review budgets and direct the interagency process for program development and implementation has been strengthened. Even so, the Coordinator has been unable to effectively oversee the anticrime program for the former Soviet Union. Interagency cooperation in implementing aid programs for the former Soviet Union has improved, with fewer disagreements on program content.

GAO found that: (1) since GAO's February 1995 report, the FSU Coordinator's role has been expanded to include oversight of all U.S. government bilateral programs in the FSU, and his authority to review budgets and direct the interagency process for program development and implementation has been strengthened; (2) despite this, the Coordinator has been unable to effectively exercise his authority to oversee the FSU anticrime program being financed with Freedom Support Act funds; and (3) interagency cooperation in implementing Freedom Support Act programs has improved, with fewer disagreements on program content.