H. R. 434
One Hundred Sixth Congress
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the
twenty-fourth day of January, two thousand
Subtitle C—Economic Development
SEC. 121. SENSE OF THE CONGRESS REGARDING
COMPREHENSIVE DEBT RELIEF FOR THE WORLD’S POOREST COUNTRIES.
(a) FINDINGS.—Congress makes the following
(1) The burden of external debt has become
a major impediment to economic growth and poverty reduction in many of
the world’s poorest countries.
(2) Until recently, the United States
Government and other official creditors sought to address this problem
by rescheduling loans and in some cases providing limited debt
(3) Despite such efforts, the cumulative
debt of many of the world’s poorest countries continued to grow beyond
their capacity to repay.
(4) In 1997, the Group of Seven, the World
Bank, and the International Monetary Fund adopted the Heavily Indebted
Poor Countries Initiative (HIPC), a commitment by the international
community that all multilateral and bilateral creditors, acting in a
coordinated and concerted fashion, would reduce poor country debt to a
(5) The HIPC Initiative is currently
undergoing reforms to address concerns raised about country
conditionality, the amount of debt forgiven, and the allocation of
savings realized through the debt forgiveness program to ensure that the
Initiative accomplishes the goals of economic growth and poverty
alleviation in the world’s poorest countries.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that—
(1) Congress and the President should work
together, without undue delay and in concert with the international
community, to make comprehensive debt relief available to the world’s
poorest countries in a manner that promotes economic growth and poverty
(2) this program of bilateral and
multilateral debt relief should be designed to strengthen and expand the
private sector, encourage increased trade and investment, support the
development of free markets, and promote broad-scale economic growth in
(3) this program of debt relief should also
support the adoption of policies to alleviate poverty and to ensure that
benefits are shared widely among the population, such as through
initiatives to advance education, improve health, combat AIDS, and
promote clean water and environmental protection;
(4) these debt relief agreements should be
designed and implemented in a transparent manner and with the broad
participation of the citizenry of the debtor country and should ensure
that country circumstances are adequately taken into account;
(5) no country should receive the benefits
of debt relief if that country does not cooperate with the United States
on terrorism or narcotics enforcement, is a gross violator of the human
rights of its citizens, or is engaged in conflict or spends excessively
on its military; and
(6) in order to prevent adverse impact on a
key industry in many developing countries, the International Monetary
Fund must mobilize its own resources for providing debt relief to
eligible countries without allowing gold to reach the open market, or
otherwise adversely affecting the market price of gold.
SEC. 122. EXECUTIVE BRANCH INITIATIVES.
(a) STATEMENT OF THE CONGRESS.—The Congress
recognizes that the stated policy of the executive branch in 1997, the
‘‘Partnership for Growth and Opportunity in Africa’’ initiative, is a step
toward the establishment of a comprehensive trade and development policy
for sub-Saharan Africa. It is the sense of the Congress that this
Partnership is a companion to the policy goals set forth in this title.
(b) TECHNICAL ASSISTANCE TO PROMOTE ECONOMIC
REFORMS AND DEVELOPMENT.—In addition to continuing bilateral and
multilateral economic and development assistance, the President shall
target technical assistance toward—
(1) developing relationships between United
States firms and firms in sub-Saharan Africa through a variety of
business associations and networks;
(2) providing assistance to the governments
of sub-Saharan African countries to—
(A) liberalize trade and promote exports;
(B) bring their legal regimes into
compliance with the standards of the World Trade Organization in
conjunction with membership in that Organization;
(C) make financial and fiscal reforms;
(D) promote greater agribusiness
(3) addressing such critical agricultural
policy issues as market liberalization, agricultural export development,
and agribusiness investment in processing and transporting agricultural
(4) increasing the number of reverse trade
missions to growth-oriented countries in sub-Saharan Africa;
(5) increasing trade in services; and
(6) encouraging greater sub-Saharan African
participation in future negotiations in the World Trade Organization on
services and making further commitments in their schedules to the
General Agreement on Trade in Services in order to encourage the removal
of tariff and non-tariff barriers.
SEC. 123. OVERSEAS PRIVATE INVESTMENT
(a) INITIATION OF FUNDS.—It is the sense of
the Congress that the Overseas Private Investment Corporation should
exercise the authorities it has to initiate an equity fund or equity funds
in support of projects in the countries in sub-Saharan Africa, in addition
to the existing equity fund for sub-Saharan Africa created by the
(b) STRUCTURE AND TYPES OF FUNDS.—
(1) STRUCTURE.—Each fund initiated under
subsection (a) should be structured as a partnership managed by
professional private sector fund managers and monitored on a continuing
basis by the Corporation.
(2) CAPITALIZATION.—Each fund should be
capitalized with a combination of private equity capital, which is not
guaranteed by the Corporation, and debt for which the Corporation
(3) INFRASTRUCTURE FUND.—One or more of the
funds, with combined assets of up to $500,000,000, should be used in
support of infrastructure projects in countries of sub-Saharan Africa.
(4) EMPHASIS.—The Corporation shall ensure
that the funds are used to provide support in particular to women
entrepreneurs and to innovative investments that expand opportunities
for women and maximize employment opportunities for poor individuals.
(c) OVERSEAS PRIVATE INVESTMENT CORPORATION.—
(1) INVESTMENT ADVISORY COUNCIL.—Section
233 of the Foreign Assistance Act of 1961 is amended by adding at the
end the following:
‘‘(e) INVESTMENT ADVISORY COUNCIL.—The Board shall
take prompt measures to increase the loan, guarantee, and insurance
programs, and financial commitments, of the Corporation in sub- Saharan
Africa, including through the use of an investment advisory council to
assist the Board in developing and implementing policies, programs, and
financial instruments with respect to sub-Saharan Africa. In addition, the
investment advisory council shall make recommendations to the Board on how
the Corporation can facilitate greater support by the United States for
trade and investment with and in sub-Saharan Africa. The investment
advisory council shall terminate 4 years after the date of the
enactment of this subsection.’’.
(2) REPORTS TO CONGRESS.—Within 6 months
after the date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the Overseas Private
Investment Corporation shall submit to Congress a report on the steps
that the Board has taken to implement section 233(e) of the Foreign
Assistance Act of 1961 (as added by paragraph (1)) and any
recommendations of the investment advisory council established pursuant
to such section.
SEC. 124. EXPORT-IMPORT BANK INITIATIVES.
(a) SENSE OF THE CONGRESS.—It is the sense of
the Congress that the Board of Directors of the Bank shall continue to
take comprehensive measures, consistent with the credit standards
otherwise required by law, to promote the expansion of the Bank’s
financial commitments in sub-Saharan Africa under the loan, guarantee and
insurance programs of the Bank.
(b) SUB-SAHARAN AFRICA ADVISORY
COMMITTEE.—The sub-Saharan Africa Advisory Committee (SAAC) is to be
commended for aiding the Bank in advancing the economic partnership
between the United States and the nations of sub-Saharan Africa by
doubling the number of sub-Saharan African countries in which the Bank is
open for traditional financing and by increasing by tenfold the Bank’s
support for sales to sub-Saharan Africa from fiscal year 1998 to fiscal
year 1999. The Board of Directors of the Bank and its staff shall continue
to review carefully the sub-Saharan Africa Advisory Committee
recommendations on the development and implementation of new and
innovative policies and programs designed to promote the Bank’s expansion
in sub-Saharan Africa.
SEC. 125. EXPANSION OF THE UNITED STATES AND
FOREIGN COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.
(a) FINDINGS.—The Congress makes the
(1) The United States and Foreign
Commercial Service (hereafter in this section referred to as the
‘‘Commercial Service’’) plays an important role in helping United States
businesses identify export opportunities and develop reliable sources of
information on commercial prospects in foreign countries.
(2) During the 1980s, the presence of the
Commercial Service in sub-Saharan Africa consisted of 14 professionals
providing services in eight countries. By early 1997, that presence had
been reduced by half to seven professionals in only four countries.
(3) Since 1997, the Department of Commerce
has slowly begun to increase the presence of the Commercial Service in
sub-Saharan Africa, adding five full-time officers to established posts.
(4) Although the Commercial Service
Officers in these countries have regional responsibilities, this kind of
coverage does not adequately service the needs of United States
businesses attempting to do business in sub-Saharan Africa.
(5) The Congress has, on several occasions,
encouraged the Commercial Service to focus its resources and efforts in
countries or regions in Europe or Asia to promote greater United States
export activity in those markets, and similar encouragement should be
provided for countries in sub-Saharan Africa as well.
(6) Because market information is not
widely available in many sub-Saharan African countries, the presence of
additional Commercial Service Officers and resources can play a
significant role in assisting United States businesses in markets in
(b) APPOINTMENTS.—Subject to the availability
of appropriations, by not later than December 31, 2001, the Secretary of
Commerce, acting through the Assistant Secretary of Commerce and Director
General of the United States and Foreign Commercial Service, shall take
steps to ensure that—
(1) at least 20 full-time Commercial
Service employees are stationed in sub-Saharan Africa; and
(2) full-time Commercial Service employees
are stationed in not less than 10 different sub-Saharan African
(c) INITIATIVE FOR SUB-SAHARAN AFRICA.—In
order to encourage the export of United States goods and services to
sub-Saharan African countries, the International Trade Administration
shall make a special effort to—
(1) identify United States goods and
services which are the best prospects for export by United States
companies to sub-Saharan Africa;
(2) identify, where appropriate, tariff and
nontariff barriers that are preventing or hindering sales of United
States goods and services to, or the operation of United States
companies in, sub-Saharan Africa;
(3) hold discussions with appropriate
authorities in sub-Saharan Africa on the matters described in paragraphs
(1) and (2) with a view to securing increased market access for United
States exporters of goods and services;
(4) identify current resource allocations
and personnel levels in sub-Saharan Africa for the Commercial Service
and consider plans for the deployment of additional resources or
personnel to that region; and
(5) make available to the public, through
printed and electronic means of communication, the information derived
pursuant to paragraphs (1) through (4) for each of the 4 years after the
date of the enactment of this Act.
SEC. 126. DONATION OF AIR TRAFFIC CONTROL
EQUIPMENT TO ELIGIBLE SUB-SAHARAN AFRICAN COUNTRIES.
It is the sense of the Congress that, to the extent
appropriate, the United States Government should make every effort to
donate to governments of sub-Saharan African countries determined to be
eligible under section 104 air traffic control equipment that is no longer
in use, including appropriate related reimbursable technical assistance.
SEC. 127. ADDITIONAL AUTHORITIES AND INCREASED
FLEXIBILITY TO PROVIDE ASSISTANCE UNDER THE DEVELOPMENT FUND FOR AFRICA.
(a) USE OF SUSTAINABLE DEVELOPMENT ASSISTANCE
TO SUPPORT FURTHER ECONOMIC GROWTH.—It is the sense of the Congress that
sustained economic growth in sub-Saharan Africa depends in large measure
upon the development of a receptive environment for trade and investment,
and that to achieve this objective the United States Agency for
International Development should continue to support programs which help
to create this environment. Investments in human resources, development,
and implementation of free market policies, including policies to
liberalize agricultural markets and improve food security, and the support
for the rule of law and democratic governance should continue to be
encouraged and enhanced on a bilateral and regional basis.
(b) DECLARATIONS OF POLICY.—The Congress
makes the following declarations:
(1) The Development Fund for Africa
established under chapter 10 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2293 et seq.) has been an effective tool in providing
development assistance to sub-Saharan Africa since 1988.
(2) The Development Fund for Africa will
complement the other provisions of this title and lay a foundation for
increased trade and investment opportunities between the United States
and sub-Saharan Africa.
(3) Assistance provided through the
Development Fund for Africa will continue to support programs and
activities that promote the long term economic development of
sub-Saharan Africa, such as programs and activities relating to the
(A) Strengthening primary and vocational
education systems, especially the acquisition of middle-level
technical skills for operating modern private businesses and the
introduction of college level business education, including the study
of international business, finance, and stock exchanges.
(B) Strengthening health care systems.
(C) Supporting democratization, good
governance and civil society and conflict resolution efforts.
(D) Increasing food security by promoting
the expansion of agricultural and agriculture-based industrial
production and productivity and increasing real incomes for poor
(E) Promoting an enabling environment for
private sector-led growth through sustained economic reform,
privatization programs, and market-led economic activities.
(F) Promoting decentralization and local
participation in the development process, especially linking the rural
production sectors and the industrial and market centers throughout
(G) Increasing the technical and
managerial capacity of sub-Saharan African individuals to manage the
economy of sub-Saharan Africa.
(H) Ensuring sustainable economic growth
through environmental protection.
(4) The African Development Foundation has
a unique congressional mandate to empower the poor to participate fully
in development and to increase opportunities for gainful employment,
poverty alleviation, and more equitable income distribution in
sub-Saharan Africa. The African Development Foundation has worked
successfully to enhance the role of women as agents of change,
strengthen the informal sector with an emphasis on supporting micro and
small sized enterprises, indigenous technologies, and mobilizing local
financing. The African Development Foundation should develop and
implement strategies for promoting participation in the socioeconomic
development process of grassroots and informal sector groups such as
nongovernmental organizations, cooperatives, artisans, and traders into
the programs and initiatives established under this title.
(c) ADDITIONAL AUTHORITIES.—
(1) IN GENERAL.—Section 496(h) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2293(h)) is amended—
(A) by redesignating paragraph (3) as
paragraph (4); and
(B) by inserting after paragraph (2) the
‘‘(3) DEMOCRATIZATION AND CONFLICT RESOLUTION
CAPABILITIES.— Assistance under this section may also include program
‘‘(A) to promote democratization, good governance,
and strong civil societies in sub-Saharan Africa; and
‘‘(B) to strengthen conflict resolution
capabilities of governmental, intergovernmental, and nongovernmental
entities in sub-Saharan Africa.’’.
(2) CONFORMING AMENDMENT.—Section 496(h)(4)
of such Act, as amended by paragraph (1), is further amended by striking
‘‘paragraphs (1) and (2)’’ in the first sentence and inserting
‘‘paragraphs (1), (2), and (3)’’.
SEC. 128. ASSISTANCE FROM UNITED STATES PRIVATE
SECTOR TO PREVENT AND REDUCE HIV/AIDS IN SUB-SAHARAN AFRICA.
It is the sense of the Congress that United States
businesses should be encouraged to provide assistance to sub-Saharan
African countries to prevent and reduce the incidence of HIV/AIDS in
sub-Saharan Africa. In providing such assistance, United States businesses
should be encouraged to consider the establishment of an HIV/AIDS Response
Fund in order to provide for coordination among such businesses in the
collection and distribution of the assistance to sub-Saharan African
SEC. 129. SENSE OF THE CONGRESS RELATING TO
HIV/AIDS CRISIS IN SUB-SAHARAN AFRICA.
(a) FINDINGS.—The Congress finds the
(1) Sustained economic development in
sub-Saharan Africa depends in large measure upon successful trade with
and foreign assistance to the countries of sub-Saharan Africa.
(2) The HIV/AIDS crisis has reached
epidemic proportions in sub-Saharan Africa, where more than 21,000,000
men, women, and children are infected with HIV.
(3) Eighty-three percent of the estimated
11,700,000 deaths from HIV/AIDS worldwide have been in sub-Saharan
(4) The HIV/AIDS crisis in sub-Saharan
Africa is weakening the structure of families and societies.
(5)(A) The HIV/AIDS crisis threatens the
future of the workforce in sub-Saharan Africa.
(B) Studies show that HIV/AIDS in
sub-Saharan Africa most severely affects individuals between the ages of
15 and 49—the age group that provides the most support for the economies
of sub-Saharan African countries.
(6) Clear evidence demonstrates that
HIV/AIDS is destructive to the economies of sub-Saharan African
(7) Sustained economic development is
critical to creating the public and private sector resources in
sub-Saharan Africa necessary to fight the HIV/AIDS epidemic.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that—
(1) addressing the HIV/AIDS crisis in
sub-Saharan Africa should be a central component of United States
foreign policy with respect to sub-Saharan Africa;
(2) significant progress needs to be made
in preventing and treating HIV/AIDS in sub-Saharan Africa in order to
sustain a mutually beneficial trade relationship between the United
States and sub-Saharan African countries; and
(3) the HIV/AIDS crisis in sub-Saharan
Africa is a global threat that merits further attention through greatly
expanded public, private, and joint public-private efforts, and through
appropriate United States legislation.
SEC. 130. STUDY ON IMPROVING AFRICAN
(a) IN GENERAL.—The Secretary of Agriculture,
in consultation with American Land Grant Colleges and Universities and
not-for-profit international organizations, is authorized to conduct a
2-year study on ways to improve the flow of American farming techniques
and practices to African farmers. The study shall include an examination
of ways of improving or utilizing—
(1) knowledge of insect and sanitation
(2) modern farming and soil conservation
(3) modern farming equipment (including
maintaining the equipment);
(4) marketing crop yields to prospective
(5) crop maximization practices.
The Secretary of Agriculture shall submit the study
to the Committee on Agriculture, Nutrition, and Forestry of the Senate and
the Committee on Agriculture of the House of Representatives not later
than September 30, 2001.
(b) LAND GRANT COLLEGES AND NOT-FOR-PROFIT
INSTITUTIONS.— In conducting the study under subsection (a), the Secretary
of Agriculture is encouraged to consult with American Land Grant Colleges
and not-for-profit international organizations that have firsthand
knowledge of current African farming practices.
SEC. 131. SENSE OF THE CONGRESS REGARDING
EFFORTS TO COMBAT DESERTIFICATION IN AFRICA AND OTHER COUNTRIES.
(a) FINDINGS.—The Congress finds that—
(1) desertification affects approximately
one-sixth of the world’s population and one-quarter of the total land
(2) over 1,000,000 hectares of Africa are
affected by desertification;
(3) dryland degradation is an underlying
cause of recurrent famine in Africa;
(4) the United Nations Environment
Programme estimates that desertification costs the world $42,000,000,000
a year, not including incalculable costs in human suffering; and
(5) the United States can strengthen its
partnerships throughout Africa and other countries affected by
desertification, help alleviate social and economic crises caused by
misuse of natural resources, and reduce dependence on foreign aid, by
taking a leading role to combat desertification.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that the United States should expeditiously work with the
international community, particularly Africa and other countries affected
by desertification, to—
(1) strengthen international cooperation to
(2) promote the development of national and
regional strategies to address desertification and increase public
awareness of this serious problem and its effects;
(3) develop and implement national action
programs that identify the causes of desertification and measures to
address it; and
(4) recognize the essential role of local
governments and nongovernmental organizations in developing and
implementing measures to address desertification.