WASHINGTON — US President Barack Obama on Monday proposed a fund of US$770 million to boost political and other reforms in Arab countries undergoing pro-democracy revolutions.
The new fund is part of $51.6 billion set aside for the State Department and the US Agency for International Development in 2013, which accounts for just one percent of the entire government's budget, the State Department said.
The department highlighted "$770 million for a new Middle East and North Africa Incentive Fund to respond strategically to historic changes taking place across the region.”
"The fund will incentivize long-term economic, political and trade reforms — key pillars of stability — by supporting governments that demonstrate a commitment to undergo meaningful change and empower their people," it said.
It did not identify countries which will receive the funds, but the United States last year gave tens of millions of dollars to Egypt and Tunisia after their leaders were overthrown in pro-democracy revolutions.
The State Department also pointed out that the Obama budget retained $1.3 billion in military assistance for Egypt, even though the administration has warned such aid will be reviewed in the current year amid a dispute with Cairo over a crackdown on US-funded pro-democracy groups.
State Department spokeswoman Victoria Nuland said the warning for 2012 remained in place, noting that US Secretary of State Hillary Clinton had to certify first whether Egypt is making progress toward democracy.
But she added, "Let's hope we're still not in this situation in 2013.”
"We do have concerns that if we can't resolve this situation it could have implications for the whole relationship with Egypt, including what we would like to do together and how we would like to support them."
Fiscal year 2013 begins in October this year.
The Obama budget is seen by many as a partisan document that has little chance of being voted into law.
