[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4697 Introduced in House (IH)]
106th CONGRESS
2d Session
H. R. 4697
To amend the Foreign Assistance Act of 1961 to ensure that United
States assistance programs promote good governance by assisting other
countries to combat corruption throughout society and to promote
transparency and increased accountability for all levels of government
and throughout the private sector.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 20, 2000
Mr. Gejdenson (for himself, Mr. Lantos, Mr. Berman, Mr. Smith of New
Jersey, Mr. Ackerman, Mr. Payne, and Mr. Rothman) introduced the
following bill; which was referred to the Committee on International
Relations
_______________________________________________________________________
A BILL
To amend the Foreign Assistance Act of 1961 to ensure that United
States assistance programs promote good governance by assisting other
countries to combat corruption throughout society and to promote
transparency and increased accountability for all levels of government
and throughout the private sector.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``International Anti-Corruption and
Good Governance Act of 2000''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds the following:
(1) Widespread corruption endangers the stability and
security of societies, undermines democracy, and jeopardizes
the social, political, and economic development of a society.
(2) Corruption facilitates criminal activities, such as
money laundering, hinders economic development, inflates the
costs of doing business, and undermines the legitimacy of the
government and public trust.
(3) In January 1997 the United Nations General Assembly
adopted a resolution urging member states to carefully consider
the problems posed by the international aspects of corrupt
practices and to study appropriate legislative and regulatory
measures to ensure the transparency and integrity of financial
systems.
(4) The United States was the first country to criminalize
international bribery through the enactment of the Foreign
Corrupt Practices Act of 1977 and United States leadership was
instrumental in the passage of the Organization for Economic
Cooperation and Development (OECD) Convention on Combatting
Bribery of Foreign Public Officials in International Business
Transactions.
(5) The Vice President, at the Global Forum on Fighting
Corruption in 1999, declared corruption to be a direct threat
to the rule of law and the Secretary of State declared
corruption to be a matter of profound political and social
consequence for our efforts to strengthen democratic
governments.
(6) The Secretary of State, at the Inter-American
Development Bank's annual meeting in March 2000, declared that
despite certain economic achievements, democracy is being
threatened as citizens grow weary of the corruption and
favoritism of their official institutions and that efforts must
be made to improve governance if respect for democratic
institutions is to be regained.
(7) In May 1996 the Organization of American States (OAS)
adopted the Inter-American Convention Against Corruption
requiring countries to provide various forms of international
cooperation and assistance to facilitate the prevention,
investigation, and prosecution of acts of corruption.
(8) Independent media, committed to fighting corruption and
trained in investigative journalism techniques, can both
educate the public on the costs of corruption and act as a
deterrent against corrupt officials.
(9) Competent and independent judiciary, founded on a
merit-based selection process and trained to enforce contracts
and protect property rights, is critical for creating a
predictable and consistent environment for transparency in
legal procedures.
(10) Independent and accountable legislatures, responsive
political parties, and transparent electoral processes, in
conjunction with professional, accountable, and transparent
financial management and procurement policies and procedures,
are essential to the promotion of good governance and to the
combat of corruption.
(11) Transparent business frameworks, including modern
commercial codes and intellectual property rights, are vital to
enhancing economic growth and decreasing corruption at all
levels of society.
(12) The United States should attempt to improve
accountability in foreign countries, including by--
(A) promoting transparency and accountability
through support for independent media, promoting
financial disclosure by public officials, political
parties, and candidates for public office, open
budgeting processes, adequate and effective internal
control systems, suitable financial management systems,
and financial and compliance reporting;
(B) supporting the establishment of audit offices,
inspectors general offices, and anti-corruption
agencies;
(C) promoting responsive, transparent, and
accountable legislatures that ensure legislative
oversight and whistle-blower protection;
(D) promoting judicial reforms that criminalize
corruption and promoting law enforcement that
prosecutes corruption;
(E) fostering business practices that promote
transparent, ethical, and competitive behavior in the
private sector through the development of an effective
legal framework for commerce, including anti-bribery
laws, commercial codes that incorporate international
standards for business practices, and protection of
intellectual property rights; and
(F) promoting free and fair national, state, and
local elections.
(b) Purpose.--The purpose of this Act is to ensure that United
States assistance programs promote good governance by assisting other
countries to combat corruption throughout society and to improve
transparency and accountability at all levels of government and
throughout the private sector.
SEC. 3. DEVELOPMENT ASSISTANCE POLICIES.
(a) General Policy.--Section 101(a) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151(a)) is amended in the fifth sentence--
(1) by striking ``four'' and inserting ``five'';
(2) in paragraph (3), by striking ``and'' at the end;
(3) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(5) the promotion of good governance through combating
corruption and improving transparency and accountability.'' .
(b) Development Assistance Policy.--Paragraph (4) of the third
sentence of section 102(b) of the Foreign Assistance Act of 1961 (22
U.S.C. 2151-1(b)) is amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) in subparagraph (F), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(G) progress in combating corruption and
improving transparency and accountability in the public
and private sector.''.
SEC. 4. DEPARTMENT OF THE TREASURY TECHNICAL ASSISTANCE PROGRAM FOR
DEVELOPING COUNTRIES.
Section 129(b) of the Foreign Assistance Act of 1961 (22 U.S.C.
2151aa(b)) is amended by adding at the end the following:
``(3) Emphasis on anti-corruption.--Such technical
assistance shall include elements designed to combat anti-
competitive, unethical and corrupt activities, including
protection against actions that may distort or inhibit
transparency in market mechanisms and, to the extent
applicable, privatization procedures.''.
SEC. 5. AUTHORIZATION OF GOOD GOVERNANCE PROGRAMS.
(a) In General.--Chapter 1 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.) is amended by adding at the end the
following:
``SEC. 131. PROGRAMS TO ENCOURAGE GOOD GOVERNANCE.
``(a) Establishment of Programs.--
``(1) In general.--The President is authorized to establish
programs that combat corruption, improve transparency and
accountability, and promote other forms of good governance in
countries described in paragraph (2).
``(2) Countries described.--A country described in this
paragraph is a country that is eligible to receive assistance
under this part (including chapter 4 of part II of this Act) or
the Support for East European Democracy (SEED) Act of 1989.
``(3) Priority.--In carrying out paragraph (1), the
President shall give priority to establishing programs in
countries that received a significant amount of United States
foreign assistance for the prior fiscal year, or in which the
United States has a significant economic interest, and that
continue to have the most persistent problems with public and
private corruption. In determining which countries have the
most persistent problems with public and private corruption
under the preceding sentence, the President shall take into
account criteria such as the Transparency International Annual
Corruption Perceptions Index, standards and codes set forth by
the International Bank for Reconstruction and Development and
the International Monetary Fund, and other relevant criteria.
``(4) Requirement.--Assistance provided for countries under
programs established pursuant to paragraph (1) may be made
available notwithstanding any other provision of law that
restricts assistance to foreign countries.
``(b) Specific Projects and Activities.--The programs established
pursuant to subsection (a) shall include, to the extent appropriate,
projects and activities that--
``(1) support responsible independent media to promote
oversight of public and private institutions;
``(2) implement financial disclosure among public
officials, political parties, and candidates for public office,
open budgeting processes, and transparent financial management
systems;
``(3) establish audit offices, inspectors general, and
anti-corruption agencies;
``(4) promote responsive, transparent, and accountable
legislatures that ensure legislative oversight and whistle-
blower protection;
``(5) promote legal and judicial reforms that criminalize
corruption and law enforcement reforms and development that
encourage prosecutions of criminal corruption;
``(6) assist in the development of a legal framework for
commercial transactions that fosters business practices that
promote transparent, ethical, and competitive behavior in the
economic sector, such as commercial codes that incorporate
international standards and protection of intellectual property
rights;
``(7) promote free and fair national, state, and local
elections;
``(8) foster public participation in the legislative
process and public access to government information; and
``(9) engage civil society in the fight against corruption.
``(c) Conduct of Projects and Activities.--Projects and activities
under the programs established pursuant to subsection (a) may include,
among other things, training and technical assistance (including
drafting of anti-corruption, privatization, and competitive statutory
and administrative codes), drafting of anti-corruption, privatization,
and competitive statutory and administrative codes, support for
independent media and publications, financing of the program and
operating costs of nongovernmental organizations that carry out such
projects or activities, and assistance for travel of individuals to the
United States and other countries for such projects and activities.
``(d) Annual Report.--
``(1) In general.--The President shall prepare and transmit
to the Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations of the
Senate an annual report on--
``(A) projects and activities carried out under
programs established under subsection (a) for the prior
year in priority countries identified pursuant to
subsection (a)(3); and
``(B) projects and activities carried out under
programs to combat corruption, improve transparency and
accountability, and promote other forms of good
governance established under other provisions of law
for the prior year in such countries.
``(2) Required contents.--The report required by paragraph
(1) shall contain the following information with respect to
each country described in paragraph (1):
``(A) A description of all United States
Government-funded programs and initiatives to combat
corruption and improve transparency and accountability
in the country.
``(B) A description of United States diplomatic
efforts to combat corruption and improve transparency
and accountability in the country.
``(C) An analysis of major actions taken by the
government of the country to combat corruption and
improve transparency and accountability in the country.
``(e) Funding.--Amounts made available to carry out the other
provisions of this part (including chapter 4 of part II of this Act)
and the Support for East European Democracy (SEED) Act of 1989 shall be
made available to carry out this section.''.
(b) Deadline for Initial Report.--The initial annual report
required by section 131(d)(1) of the Foreign Assistance Act of 1961, as
added by subsection (a), shall be transmitted not later than 180 days
after the date of the enactment of this Act.
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