[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1388 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1388

To support private sector development, employment growth, rule of law, 
 democratic reform, and accountable government in qualified transition 
countries in the Middle East and North Africa through the authorization 
   of the participation by the United States in the general capital 
 increase of the European Bank for Reconstruction and Development, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 19, 2011

 Mr. Kerry (for himself, Mr. McCain, and Mr. Lieberman) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Foreign Relations

_______________________________________________________________________

                                 A BILL


 
To support private sector development, employment growth, rule of law, 
 democratic reform, and accountable government in qualified transition 
countries in the Middle East and North Africa through the authorization 
   of the participation by the United States in the general capital 
 increase of the European Bank for Reconstruction and Development, and 
                          for other purposes.

    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 ``Middle East and North Africa 
Transition and Development Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The European Bank for Reconstruction and Development 
        was created to support the transition of command economies to 
        market economies following the collapse of communist regimes in 
        1989.
            (2) The Bank is the only international financial 
        institution that--
                    (A) has a transition mandate;
                    (B) includes political aspects to its mandate; and
                    (C) seeks to assist only those countries that are 
                committed to, and are applying, the principles of 
                multiparty democracy, pluralism, and development of 
                market economics in accordance with Article 1 of the 
                Agreement Establishing the European Bank for 
                Reconstruction and Development.
            (3) Egypt, which is a current shareholder of the Bank, has 
        requested that the Bank consider Egypt's candidacy for becoming 
        a country of activity. Consideration for including Egypt in the 
        Bank's geographic mandate has been accelerated at the request 
        of Egypt's interim government.
            (4) Other countries from the Middle East and North Africa, 
        including Tunisia, have requested that the Bank consider their 
        potential to become countries of activity.
            (5) The Bank estimates that approximately $4,000,000,000 
        per year could be provided for financial investment in new 
        countries of activity in North Africa from the Bank's existing 
        financial resources, without the need to call on its 
        shareholders for additional capital.
            (6) The functions of the Bank are consistent with the 
        critical and rising economic needs of Egypt and the Middle East 
        and North Africa.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agreement establishing the european bank for 
        reconstruction and development.--The term ``Agreement 
        Establishing the European Bank for Reconstruction and 
        Development'' means the Agreement establishing the European 
        Bank for Reconstruction and Development, done at Paris May 29, 
        1990, and entered into force March 28, 1991.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate; and
                    (B) the Committee on Financial Services and the 
                Committee on Appropriations of the House of 
                Representatives.
            (3) Bank.--The term ``Bank'' means the European Bank for 
        Reconstruction and Development.
            (4) Country of activity.--The term ``country of activity'' 
        means a country in which the Bank provides its resources for 
        loans or other assistance, including through the use of special 
        funds.
            (5) International financial institution.--The term 
        ``international financial institution'' has the meaning given 
        that term in section 1701(c)(2) of the International Financial 
        Institutions Act (22 U.S.C. 262r(c)(2)).
            (6) Multilateral development bank.--The term ``multilateral 
        development bank'' has the meaning given that term in section 
        1701(c)(4) of the International Financial Institutions Act (22 
        U.S.C. 262r(c)(4)).

SEC. 4. UNITED STATES POLICY WITH RESPECT TO COUNTRIES LOCATED IN THE 
              MIDDLE EAST AND NORTH AFRICA.

    (a) Policy Declaration.--It is the policy of the United States--
            (1) to support a successful and sustainable transition to 
        democracy in the Middle East and North Africa, including Egypt 
        and Tunisia, that reflects the legitimate aspirations of the 
        people in that region for greater political freedom and 
        economic opportunity; and
            (2) to increase economic prosperity in that region through 
        financial investment and technical assistance and by utilizing 
        the resources of appropriate multilateral development banks.
    (b) Promotion of United States Policy.--The Secretary of the 
Treasury should instruct the United States Executive Director of the 
European Bank for Reconstruction and Development to use the voice and 
vote of the United States to promote the policies described in 
subsection (a).

SEC. 5. NEGOTIATING OBJECTIVES WITH RESPECT TO AN AGREEMENT TO EXPAND 
              THE MANDATE OF THE EUROPEAN BANK FOR RECONSTRUCTION AND 
              DEVELOPMENT TO COUNTRIES LOCATED IN THE MIDDLE EAST AND 
              NORTH AFRICA.

    (a) In General.--The negotiating objectives of the United States 
with respect to an agreement described in subsection (b) should be to 
seek--
            (1) criteria that are consistent with the criteria 
        described in section 6(b) for the approval of loans or other 
        assistance by the Bank for countries that become countries of 
        activity as a result of the implementation of the agreement; 
        and
            (2) the establishment by the Bank of a credible mechanism 
        to ensure that countries of activity that are not committed to 
        the fundamental principles of multiparty democracy, pluralism, 
        and market economics do not continue to benefit from the 
        resources of the Bank.
    (b) Agreement Described.--An agreement described in this subsection 
is an agreement to expand the use of the resources of the Bank for 
countries located in the Middle East or North Africa, including through 
an amendment to the Agreement Establishing the European Bank for 
Reconstruction and Development.

SEC. 6. SUPPORT FOR LOANS AND OTHER ASSISTANCE PROVIDED BY THE BANK TO 
              COUNTRIES OF ACTIVITY THAT MEET CERTAIN CRITERIA.

    (a) In General.--The Secretary of the Treasury should instruct the 
United States Executive Director of the Bank to use the voice and vote 
of the United States to oppose the approval of a loan or other 
assistance from the Bank to a country of activity in the Middle East or 
North Africa if the country does not meet the criteria described in 
subsection (b).
    (b) Criteria Described.--A country of activity meets the criteria 
described in this subsection if the government of the country--
            (1) requests the Bank to conduct activities in the country;
            (2) meets, or is demonstrably committed to meeting, the 
        criteria set forth in Article 1 of the Agreement Establishing 
        the European Bank for Reconstruction and Development, including 
        a commitment to ``the principles of multiparty democracy, 
        pluralism and market economics'';
            (3) demonstrates a commitment to free, fair, and inclusive 
        elections that meet international standards;
            (4) has a public commitment to universally recognized human 
        rights and freedoms, including freedom of religion, 
        association, assembly, and expression, and demonstrates a 
        commitment to respect those rights and freedoms in practice; 
        and
            (5) implements, or is demonstrably committed to 
        implementing, economic reforms that advance private sector 
        growth, improve the investment climate, increase transparency, 
        especially transparency in public finances, and foster job 
        creation.
    (c) Consultations With Congress With Respect to New Countries of 
Activity.--Not later than 10 days before a vote of the Board of 
Directors or the Board of Governors of the Bank to approve a country 
located in the Middle East or in North Africa as a new country of 
activity, the Secretary of the Treasury shall--
            (1) notify the appropriate congressional committees of the 
        vote; and
            (2) consult with those committees and describe to those 
        committees how that country meets the criteria established by 
        the Bank for being a country of activity.
    (d) Annual Report.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter until the fifth year 
after such date of enactment, the Secretary of the Treasury shall 
submit to the appropriate congressional committees a report that 
includes the following:
            (1) A description of the activities of the Bank in each 
        country of activity that is located in the Middle East or in 
        North Africa.
            (2) The assessment of the Bank with respect to the ongoing 
        eligibility of each such country to receive assistance from the 
        Bank.
            (3) A description of how the activities carried out by the 
        Bank in each such country during the preceding year served to 
        promote the functions of the Bank, as described in Article 2 of 
        the Agreement Establishing the European Bank for Reconstruction 
        and Development.
            (4) An assessment of--
                    (A) the extent to which the activities of the Bank 
                are complementary to the activities of other 
                international financial institutions operating in the 
                Middle East and North Africa; and
                    (B) the extent of cooperation between the Bank and 
                those other international financial institutions.
            (5) A list of any countries being considered to be new 
        countries of activity.

SEC. 7. SUPPORT FOR CLEAR STANDARDS FOR GRADUATION OF COUNTRIES OF 
              ACTIVITY.

    The Secretary of the Treasury should instruct the United States 
Executive Director of the Bank to use the voice and vote of the United 
States to seek the adoption by the Bank of clear standards for the 
successful graduation of countries of activity if those countries have 
substantially achieved the transition objectives of the Bank.

SEC. 8. AUTHORIZATION FOR THE EUROPEAN BANK FOR RECONSTRUCTION AND 
              DEVELOPMENT.

    (a) Findings.--Congress makes the following findings:
            (1) The request by the European Bank for Reconstruction and 
        Development for subscription of capital is for callable shares 
        only. Historically, callable shares, while requiring an 
        authorization of funds, do not require an appropriation.
            (2) The International Programs Justification for 
        Appropriations and Fiscal Year 2012 Budget Request of the 
        Department of the Treasury for the European Bank for 
        Reconstruction and Development is $0, stating that ``[t]his 
        callable capital does not require appropriated funds''.
    (b) Authorization.--The European Bank for Reconstruction and 
Development Act (section 562(c) of Public Law 101-531; 22 U.S.C. 290l 
et seq.) is amended by adding at the end the following:
            ``(12) Capital increase.--
                    ``(A) Subscription authorized.--
                            ``(i) In general.--The United States 
                        Governor of the Bank may subscribe on behalf of 
                        the United States to not more than 90,044 
                        additional callable shares of capital stock of 
                        the Bank, in accordance with Resolution 128, as 
                        adopted by the Board of Governors of the Bank 
                        at the annual meeting in Zagreb, Croatia, on 
                        May 14, 2010.
                            ``(ii) Condition.--Any subscription by the 
                        United States to additional capital stock of 
                        the Bank shall be effective only to such extent 
                        and in such amounts as are provided for in 
                        advance by appropriations Acts.
                    ``(B) Authorization of appropriations.--In order to 
                pay for the increase in the United States subscription 
                to capital stock of the Bank authorized under 
                subparagraph (A), there are authorized to be 
                appropriated $1,252,331,952, without fiscal year 
                limitation, for payment by the Secretary of the 
                Treasury.''.

SEC. 9. STATUS OF COUNTRIES AS CANDIDATE COUNTRIES UNDER THE MILLENNIUM 
              CHALLENGE ACT OF 2003.

    Section 606 of the Millennium Challenge Act of 2003 (22 U.S.C. 
7705) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by amending the paragraph heading to 
                        read as follows:
            ``(1) In general.--'';
                            (ii) in the matter preceding subparagraph 
                        (A), by striking ``fiscal year 2004'' and 
                        inserting ``any fiscal year'';
                            (iii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) the country--
                            ``(i) has a per capita income that is not 
                        greater than the World Bank's lower middle 
                        income country threshold for such fiscal year; 
                        and
                            ``(ii) is among the 75 lowest per capita 
                        income countries, as identified by the World 
                        Bank; and''; and
                            (iv) in subparagraph (B), by striking 
                        ``subject to paragraph (3)'' and inserting 
                        ``subject to paragraph (2)'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2);
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``for fiscal year 2006 or a 
                        subsequent fiscal year'' and inserting ``for 
                        any fiscal year''; and
                            (ii) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) has a per capita income that is not greater 
                than the World Bank's lower middle income country 
                threshold for such fiscal year;
                    ``(B) is not among the 75 lowest per capita income 
                countries as identified by the World Bank; and
                    ``(C) meets the requirements under subsection 
                (a)(1)(B).''; and
                    (B) in paragraph (2)--
                            (i) by striking ``for fiscal year 2006 or 
                        any subsequent fiscal year'' and inserting 
                        ``for any fiscal year''; and
                            (ii) by striking ``for fiscal year 2006 or 
                        the subsequent fiscal year, as the case may 
                        be'' and inserting ``for such fiscal year'';
            (3) by redesignating subsection (c) as subsection (d); and
            (4) by inserting after subsection (b) the following:
    ``(c) Maintaining Candidate Status.--Beginning in fiscal year 2012, 
a country the per capita income of which changes during a fiscal year 
so that the country no longer meets the requirements for being a 
candidate country under subsection (a)(1) or (b)(1) shall, 
notwithstanding that change in per capita income, continue to be 
eligible to be a candidate country under subsection (a)(1) or (b)(1) 
(as the case may be) during that fiscal year and the 3 fiscal years 
thereafter to the same extent and in the same manner as if the per 
capita income of the country had not changed.''.
                                 <all>