In September 1999, the government of Colombia announced a strategy, known as "Plan Colombia," to (1) reduce the production of illicit drugs (primarily cocaine) by 50 percent in 6 years and (2) improve security in Colombia by re-claiming control of areas held by illegal armed groups. Since fiscal year 2000, the United States has provided over $6 billion to support Plan Colombia. The Departments of State, Defense, and Justice and the U.S. Agency for International Development (USAID) manage the assistance. GAO examined (1) the progress made toward Plan Colombia's drug reduction and enhanced security objectives, (2) the results of U.S. aid for the military and police, (3) the results of U.S. aid for non-military programs, and (4) the status of efforts to "nationalize" or transfer operations and funding responsibilities for U.S.-supported programs to Colombia.

Plan Colombia's goal of reducing the cultivation, processing, and distribution of illegal narcotics by 50 percent in 6 years was not fully achieved. From 2000 to 2006, opium poppy cultivation and heroin production declined about 50 percent, while coca cultivation and cocaine production levels increased by about 15 and 4 percent, respectively. These increases, in part, can be explained by measures taken by coca farmers to counter U.S. and Colombian eradication efforts. Colombia has improved its security climate through systematic military and police engagements with illegal armed groups and by degrading these groups' finances. U.S. Embassy Bogot? officials cautioned that these security gains will not be irreversible until illegal armed groups can no longer threaten the stability of the government of Colombia, but become a law enforcement problem requiring only police attention. Since fiscal year 2000, State and Defense provided nearly $4.9 billion to the Colombian military and National Police. Notably, over 130 U.S.-funded helicopters have provided the air mobility needed to rapidly move Colombian counternarcotics and counterinsurgency forces. U.S. advisors, training, equipment, and intelligence assistance have also helped professionalize Colombia's military and police forces, which have recorded a number of achievements including the aerial and manual eradication of hundreds of thousands of hectares of coca, the seizure of tons of cocaine, and the capture or killing of a number of illegal armed group leaders and thousands of combatants. However, these efforts face several challenges, including countermeasures taken by coca farmers to combat U.S. and Colombian eradication efforts. Since fiscal year 2000, State, Justice, and USAID have provided nearly $1.3 billion for a wide range of social, economic, and justice sector programs. These programs have had a range of accomplishments, including aiding internally displaced persons and reforming Colombia's justice sector. But some efforts have been slow in achieving their objectives while others are difficult to assess. For example, the largest share of U.S. non-military assistance has gone towards alternative development, which has provided hundreds of thousands of Colombians legal economic alternatives to the illicit drug trade. But, alternative development is not provided in most areas where coca is cultivated and USAID does not assess how such programs relate to its strategic goals of reducing the production of illicit drugs or achieving sustainable results. In response to congressional direction in 2005 and budget cuts in fiscal year 2008, State and the other U.S. departments and agencies have accelerated their nationalization efforts, with State focusing on Colombian military and National Police aviation programs. One aviation program has been nationalized and two are in transition, with the largest--the Army Aviation Brigade--slated for turnover by 2012. Two National Police aviation programs have no turnover dates established. State, Defense, Justice, and USAID each have their own approaches to nationalization, with different timelines and objectives that have not been coordinated to promote potential efficiencies.

Status Legend:

Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

• In Process
• Open
• Closed - implemented
• Closed - not implemented

Recommendations for Executive Action

Recommendation: The Secretary of State, in conjunction with the Secretary of Defense, Attorney General, and Administrator of USAID, and in coordination with the government of Colombia, should develop an integrated nationalization plan that details plans for turning over operational and funding responsibilities for U.S.-supported programs to Colombia. This plan should define U.S. roles and responsibilities for all U.S.-supported military and non-military programs. Other key plan elements should include future funding requirements; a detailed assessment of Colombia's fiscal situation, spending priorities, and ability to assume additional funding responsibilities; and specific milestones for completing the transition to the Colombians.

Agency Affected: Department of State

Status: Open

Comments: State agreed that it should continue to improve the coordination of nationalization efforts among Defense, other executive branch agencies, and the government of Colombia. State noted that its annual multiyear strategy report (which it first provided to Congress in 2006) offers the most useful format to address our recommendation. While State's annual report is useful, it does not incorporate and rationalize the complex mix of agency programs, funding plans and schedules, differing agency goals, and varying timetables for nationalization as we recommend. State did not address how it intends to address these more detailed elements with Defense, Justice, and USAID. We continue to believe that an integrated plan addressing these elements would benefit the interagency and the Congress alike, as future assistance for Colombia is considered.

Recommendation: The Director of Foreign Assistance and Administrator of USAID should develop performance measurements that will help USAID (1) assess whether alternative development assistance is reducing the production of illicit narcotics, and (2) determine to what extent the agency's alternative development projects are self-sustaining.

Agency Affected: United States Agency for International Development

Status: Open

Comments: The Administrator of USAID stated that the measures it has are sufficient to gauge progress towards its strategic goals. However, USAID went on to say that better measures/indicators to assess alternative development projects could be developed. The USAID mission in Colombia noted that it is working with the USAID missions in Bolivia and Peru, which also manage alternative development programs, to identify new indicators to help measure progress. The USAID/Colombia mission also stated that USAID/Washington should lead an effort, in conjunction with the field and other interested agencies, to develop common indicators that would enhance USAID's ability to measure alternative development performance. We concur. In making our recommendation, we concluded that USAID's measures were largely output indicators that did not directly address reducing illicit drug activities or the long-term sustainability of USAID's efforts. An overall review such as USAID/Colombia suggests may help address this shortcoming.

Recommendation: The Director of Foreign Assistance and Administrator of USAID should develop performance measurements that will help USAID (1) assess whether alternative development assistance is reducing the production of illicit narcotics, and (2) determine to what extent the agency's alternative development projects are self-sustaining.

Agency Affected: Department of State: Office of the Director of U.S. Foreign Assistance

Status: Open

Comments: Neither State nor its Office of the Director of Foreign Assistance commented on this recommendation.