1.This Act may be cited as the
Middle East and North Africa
Transition and Development Act
.
2.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.
3.In this Act:
(1)Agreement
Establishing the European Bank for Reconstruction and
DevelopmentThe 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 committeesThe 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)The
term Bank means the European Bank for Reconstruction and
Development.
(4)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 institutionThe 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 bankThe 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)).
4.United States
policy with respect to countries located in the Middle East and North
Africa
(a)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 policyThe 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).
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)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)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.
6.Support for
loans and other assistance provided by the Bank to countries of activity that
meet certain criteria
(a)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)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 activityNot 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)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.
7.Support for
clear standards for graduation of countries of activityThe 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.
8.Authorization
for the European Bank for Reconstruction and Development
(a)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)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)
(A)
(i)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)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 appropriationsIn 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.
.
9.Status of
countries as candidate countries under the Millennium Challenge Act of
2003Section 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)
;
(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 statusBeginning 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.
.