U.S. Department of State Fiscal Year 2019 Agency Financial Report

The Indo-Pacific Strategy Begins Year Three I n the fall of 2017, the United States launched a whole- of-government strategy in support of a free and open Indo-Pacific in which sovereign and independent nations and diverse cultures can all prosper side-by-side and thrive in freedom and peace. This new concept – the Indo- Pacific Strategy – focuses on three areas: economics, governance, and security. The economic pillar concentrates on infrastructure, energy, and the digital economy. We are also working with our interagency partners to promote open markets; high standards and transparency; and free, fair, and reciprocal trade. Our economic initiatives help the countries in the region use private sector investment as the path to sustainable development. In August 2019, Secretary Pompeo announced nearly $30 million for energy development through the Japan- U.S. Mekong Power Partnership, building on our Asia EDGE (Enhancing Development and Growth through Energy) regional energy initiative announced by the Secretary last year. The next month, we enhanced our Infrastructure Transaction and Assistance Network by launching a Transaction Advisory Fund to help countries negotiate complex infrastructure deals. Next month we will host the first U.S.-Association of Southeast Asian Nations (ASEAN) Cyber Policy Dialogue in Singapore as we continue to implement programs under the Digital Connectivity and Cybersecurity Partnership. With respect to governance, we seek to build capacity for good governance and adherence to international law, rules, and standards. This will strengthen civil society and democratic institutions in the region, counter corruption, and help countries attract the high-quality financing necessary to fuel their economic development while securing their sovereignty. We are already implementing well over 200 governance programs under our whole-of-government Indo- Pacific Transparency Initiative (IPTI), and we are identifying new areas of cooperation with likeminded partners. These efforts strengthen democratic systems and civil society; empower citizens; fortify institutions; and eliminate laws that tie-up private investment while also combating corruption and hidden costs in foreign transactions. Vice President Pence announced the IPTI in November 2018 to elevate U.S. and partner support for sound, just, and responsive governance in the Indo-Pacific region. The IPTI is a key part of implementing the U.S. Indo-Pacific Strategy. It will strengthen democratic systems, include civil society partners, combat corruption, and fortify institutions to help nations attract high-quality private investment and secure their sovereignty. On the security front, our aim is to build a flexible, resilient network of like-minded security partners to promote regional stability; ensure freedom of navigation, and other lawful uses of the sea; and address shared challenges in the region. Secretary Pompeo committed nearly $300 million in security assistance to improve maritime domain awareness in order to protect critical sea lanes. In addition to implementing this assistance, we launched a new program in August to counter transnational crime along the Mekong, and just last week we conducted the first-ever U.S.-ASEAN maritime security exercise. We have also seen continued significant progress in our relationship with India, including through the Quadrilateral Dialogue with Japan and Australia. Secretary Pompeo participates in the ASEAN Regional Forum Ministerial in Bangkok, Thailand, August 2, 2019. Department of State 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 135