Summary: GAO reported on problems resulting from the transfer of authority for commercial work from the Department of State to the Department of Commerce, which created the Foreign Commercial Service (FCS).
GAO reviewed FCS operations in Washington, D.C., and overseas and found that numerous resource and policy problems have caused uneven progress toward the revitalization of commercial work overseas. Because of prolonged negotiations with State on the budget transfer and the perceived unreliability of State's budget figures, FCS began operations with serious monetary and staffing problems. GAO found deficiencies in FCS headquarters staff management, recruitment, training, and placement programs. Commercial staffs either lack the necessary independence from the embassies' economic sections to control their work assignments or, where there is sufficient independence, poor coordination between the commercial and economic sections resulted in inadequate reporting. GAO also found that the overseas staffs continue to concentrate on planning and administrative work and to neglect the active promotion of exports.
