United States Foreign Military Financing
Encyclopedia
The Foreign Military Financing (FMF) program provides grants and loans to help countries purchase weapons and defense equipment produced in the United States as well as acquiring defense services and military training. FMF funds purchases are made through the Foreign Military Sales (FMS) program, which manages government-to-government sales. On a much less frequent basis, FMF also funds purchases made through the Direct Commercial Sales (DCS) program, which oversees sales between foreign governments and private U.S. companies. FMF does not provide cash grants to other countries; it generally pays for sales of specific goods or services through FMS or DCS.
The State Department's Bureau of Political-Military Affairs
sets policy for the FMF program, while the Defense Security Cooperation Agency
(DSCA), within the Defense Department
, manages it on a day-to-day basis. Security Assistance Organizations (SAOs), military personnel in U.S. embassies overseas, play a key role in managing FMF within recipient countries. Some FMF pays for SAO salaries and operational costs. Congress appropriates funds for FMF through the yearly Foreign Operations Appropriations Act.
FMF exists primarily to fund arms transfers, as military training is normally granted through the International Military Education and Training
(IMET) program. However, FMF does support a good deal of training.
was the largest beneficiary of FMF, since then it is Afghanistan. Until 2003 it was Israel. Other countries in the Middle East and Greater Middle East
(including Pakistan
, Jordan
, and especially Egypt
) are among the other major recipients of FMF funds.
The allocation of FMF by country is:
The State Department's Bureau of Political-Military Affairs
Bureau of Political-Military Affairs
The Bureau of Political-Military Affairs is an agency within the United States Department of State that bridges the Department of State with the Department of Defense. It provides policy in the areas of international security, security assistance, military operations, defense strategy and policy,...
sets policy for the FMF program, while the Defense Security Cooperation Agency
Defense Security Cooperation Agency
The Defense Security Cooperation Agency , as part of the United States Department of Defense , provides financial and technical assistance, transfer of defense matériel, training and services to allies, and promotes military-to-military contacts....
(DSCA), within the Defense Department
United States Department of Defense
The United States Department of Defense is the U.S...
, manages it on a day-to-day basis. Security Assistance Organizations (SAOs), military personnel in U.S. embassies overseas, play a key role in managing FMF within recipient countries. Some FMF pays for SAO salaries and operational costs. Congress appropriates funds for FMF through the yearly Foreign Operations Appropriations Act.
FMF exists primarily to fund arms transfers, as military training is normally granted through the International Military Education and Training
International Military Education and Training
International Military Education and Training is the title of a United States security assistance program, a type of student exchange program. The policies underlying this program are directed by the United States Department of State's Bureau of Political-Military Affairs and the constituent...
(IMET) program. However, FMF does support a good deal of training.
By account, program area and program element
The allocation of FMF by account, program area and program element is:| Account | Actual 2006 (millions of USD) | Requested 2008 (millions of USD) |
|---|---|---|
| Total FMF | 4,464.90 | 4,536.00 |
| 1.1 Counter-Terrorism | 0.05 | |
| 1.1.3 Governments’ Capabilities | 0.05 | |
| 1.3 Stabilization Operations and Security Sector Reform | 4,464.85 | 4,536.00 |
| 1.3.1 Operations Support | 244.63 | 231.99 |
| 1.3.5 Immediate Protection of Civilians in Conflict | 1.23 | 0.01 |
| 1.3.6 Defense, Military, and Border Restructuring, Reform and Operations | 4,177.79 | 4,262.05 |
| 1.3.8 Program Support (Stabilization) | 41.20 | 41.95 |
By country
From 2003 to 2007 IraqIraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
was the largest beneficiary of FMF, since then it is Afghanistan. Until 2003 it was Israel. Other countries in the Middle East and Greater Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
(including Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
, Jordan
Jordan
Jordan , officially the Hashemite Kingdom of Jordan , Al-Mamlaka al-Urduniyya al-Hashemiyya) is a kingdom on the East Bank of the River Jordan. The country borders Saudi Arabia to the east and south-east, Iraq to the north-east, Syria to the north and the West Bank and Israel to the west, sharing...
, and especially Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
) are among the other major recipients of FMF funds.
The allocation of FMF by country is:
| Rank | Country | Actual FMF 2008 (millions of USD) | Percentage of total 2006 | Requested FMF 2008 (millions of USD) |
|---|---|---|---|---|
| 1 |  Afghanistan |
6012 | 51.14 | 2400.00 |
| 2 |  Iraq |
4369 | 51.14 | 2400.00 |
| 3 |  Israel |
2389 | 51.14 | 2400.00 |
| 3 |  Egypt |
1291.00 | 29.16 | 1300.00 |
| 3 |  Pakistan |
297.00 | 6.73 | 300.00 |
| 4 |  Jordan |
207.90 | 4.71 | 200.00 |
| 5 |  Colombia |
89.10 | 2.02 | 78.00 |
| 6 |  Poland |
29.70 | 0.67 | 27.20 |
| 7 |  Philippines |
29.70 | 0.67 | 11.10 |
| 8 |  Bahrain |
15.59 | 0.35 | 4.30 |
| 9 |  Turkey |
14.85 | 0.34 | 11.82 |
| 10 |  Oman |
13.86 | 0.31 | 10.11 |
| 11 |  Kingdom of Romania |
12.87 | 0.29 | 18.40 |
| 12 |  Morocco |
12.38 | 0.28 | 3.65 |
| 13 |  Georgia (country) |
11.88 | 0.27 | 10.00 |
| 14 |  Ukraine |
10.89 | 0.25 | 9.00 |
| 15 |  El Salvador |
9.90 | 0.22 | 4.80 |
| 16 |  Kingdom of Bulgaria |
9.90 | 0.22 | 13.20 |
| 17 |  Bosnia and Herzegovina |
8.91 | 0.20 | 7.80 |
| 18 |  Yemen |
8.41 | 0.19 | 4.68 |
| 19 |  Tunisia |
8.41 | 0.19 | 2.06 |
| 20 |  Latvia |
5.94 | 0.13 | 3.00 |
| 21 |  Lithuania |
4.46 | 0.10 | 3.00 |
| 22 |  Estonia |
4.45 | 0.10 | 3.00 |
| 23 |  Slovakia |
3.96 | 0.09 | 3.00 |
| 24 |  Republic of Macedonia |
3.96 | 0.09 | 4.50 |
| 25 |  Djibouti |
3.96 | 0.09 | 3.20 |
| 26 |  Azerbaijan |
3.96 | 0.09 | 4.30 |
| 27 |  Armenia |
3.96 | 0.09 | 3.00 |
| 28 |  Czech Republic |
3.96 | 0.09 | 3.00 |
| 29 |  Lebanon |
3.71 | 0.08 | 9.60 |
| 30 |  Kazakhstan |
3.46 | 0.08 | 2.00 |
| 31 |  Albania |
3.46 | 0.08 | 2.60 |
| 32 |  Mongolia |
2.97 | 0.07 | 1.00 |
| 33 |  Hungary |
2.47 | 0.06 | 2.00 |
| 34 |  Liberia |
1.98 | 0.04 | 1.00 |
| 35 |  Ethiopia |
1.98 | 0.04 | 0.85 |
| 36 |  Kyrgyzstan |
1.88 | 0.04 | 1.50 |
| 37 |  Thailand |
1.49 | 0.03 | 0.50 |
| 38 |  Sri Lanka |
0.99 | 0.02 | 0.85 |
| 39 |  Panama |
0.99 | 0.02 | |
| 40 |  Nigeria |
0.99 | 0.02 | 1.35 |
| 41 |  Indonesia |
0.99 | 0.02 | 15.70 |
| 42 |  East Timor |
0.99 | 0.02 | |
| 43 |  Cambodia |
0.99 | 0.02 | 0.20 |
| 44 |  Bangladesh |
0.99 | 0.02 | 0.88 |
| 45 |  Haiti |
0.99 | 0.02 | |
| 46 |  Dominican Republic |
0.94 | 0.02 | |
| 47 | Eastern Caribbean | 0.91 | 0.02 | |
| 48 |  Honduras |
0.89 | 0.02 | |
| 49 |  Nicaragua |
0.59 | 0.01 | |
| 50 |  Jamaica |
0.59 | 0.01 | |
| 51 |  Chile |
0.59 | 0.01 | |
| 52 |  Tajikistan |
0.49 | 0.01 | 0.68 |
| 53 |  Senegal |
0.49 | 0.01 | |
| 54 |  Moldova |
0.49 | 0.01 | |
| 55 |  Ghana |
0.49 | 0.01 | 0.30 |
| 56 |  Slovenia |
0.49 | 0.01 | 0.50 |
| 57 |  Fiji |
0.49 | 0.01 | 0.11 |
| 58 |  Turkmenistan |
0.30 | 0.01 | |
| 59 |  Tonga |
0.25 | 0.01 | 0.20 |
| 60 |  Belize |
0.20 | 0.00 | |
| 61 |  Suriname |
0.10 | 0.00 | |
| 62 |  Guyana |
0.10 | 0.00 | |
| 63 |  The Bahamas |
0.10 | 0.00 | |
| 64 |  Sudan |
|||
| 0.10 | ||||
| 65 |  South Africa |
|||
| 0.10 | ||||
| 66 |  Peru |
|||
| 67 |  Mozambique |
|||
| 0.20 | ||||
| 68 |  Madagascar |
|||
| 0.10 | ||||
| 69 |  Kenya |
|||
| 0.80 | ||||
| 70 |  Guinea |
|||
| 0.20 | ||||
| 71 |  Democratic Republic of the Congo |
|||
| 0.60 | ||||
| 72 |  Argentina |
|||
External links
- U.S. Department of Defense
- U.S. Department of State
- Defense Security Cooperation Agency
- "Report: U.S. Routinely Sends Arms to Undemocratic Nations", on Democracy Now!Democracy Now!Democracy Now! and its staff have received several journalism awards, including the Gracie Award from American Women in Radio & Television; the George Polk Award for its 1998 radio documentary Drilling and Killing: Chevron and Nigeria's Oil Dictatorship, on the Chevron Corporation and the deaths of...
, May 27, 2005 (video, audio, and print transcript).