[Congressional Record Volume 142, Number 135 (Thursday, September 26, 1996)]
[Extensions of Remarks]
[Page E1725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       AFRICAN GROWTH AND OPPORTUNITY: THE END OF DEPENDENCY ACT

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                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                      Thursday, September 26, 1996

  Mr. CRANE. Mr. Speaker, today I join my colleagues Congressman Jim 
McDermott and Congressman Charlie Rangel in introducing legislation 
that will fundamentally shift how the United States approaches our 
relations with the 48 countries in sub-Saharan Africa. For many years, 
the United States has supported a variety of foreign assistance 
programs that have sought to aid the countries of sub-Saharan Africa. 
Unfortunately, traditional foreign aid has not led to the level of 
economic development that we would all like to see on the African 
continent. In the long run, private sector investment and development 
must serve as the catalyst for the countries of sub-Saharan Africa to 
compete in the global marketplace and to improve the standard of living 
for their people. Unfortunately, the region's immediate potential does 
not seem to be reflected either in the investment decisions of 
individual businesses or in the U.S. Government's export development 
priorities, including high-profile trade missions.
  In this context, I believe that it is time for us to reexamine the 
nature of our relationship with sub-Saharan Africa and to focus our 
attention on ways to facilitate private sector trade and investment in 
the region. In 1994, Congress took an initial step in this direction by 
asking the President to develop ``a comprehensive trade and development 
policy for the countries of sub-Saharan Africa'' as part of the Uruguay 
Round Agreements Act. The first of the five annual reports required 
under this provision was submitted by President Clinton earlier this 
year. The President's report, in turn, has generated a broader 
discussion among many of my colleagues, the business community, and the 
public on the future direction of U.S. economic relations with sub-
Saharan Africa.
  Throughout this year, I have been pleased to work with Congressman 
Jim McDermott and Congressman Charlie Rangel toward developing a 
bipartisan proposal to facilitate the economic development of sub-
Saharan Africa by expanding our trade relations with the region. On 
August 1, 1996, the Subcommittee on Trade of the Ways and Means 
Committee held a hearing on this issue to look more closely at how we 
might elevate the priorities of business and government toward sub-
Saharan Africa and pursue mutually beneficial trade expansion efforts. 
The legislation that we are introducing today is the culmination of our 
work on this issue in the 104th Congress and will serve as the basis 
for further action on this issue by the Ways and Means Committee next 
year.
  Among other things, the ``African Growth and Opportunity: The End of 
Dependency Act'' calls for the negotiation of a free-trade agreement 
with the countries of sub-Saharan Africa that take appropriate steps to 
reform their economies. Moreover, to put momentum behind these 
negotiations and to focus greater attention on the region in the 
private sector, the bill calls for the creation of a United States-sub-
Saharan Africa Trade and Economic Cooperation Forum. This forum will 
provide regular opportunities for policy leader and heads of state to 
meet to discuss issues of mutual interest and to keep the trade 
negotiations on track. Finally, our proposal will create privately 
managed equity and infrastructure funds to encourage private 
institutional investors in developed countries to pool their resources 
to make investments in established businesses and infrastructure 
projects in sub-Saharan Africa.
  With a combined population of nearly 600 million people, sub-Saharan 
Africa can and should become a major export market for United States 
goods and services. In my view, the active participation of the global 
marketplace is essential to creating the economic and investment 
opportunities that will stimulate the conditions for developing 
countries to emerge as business partners, rather than aid recipients. 
By giving sub-Saharan African countries a trade and investment 
alternative to foreign aid, this important legislation will encourage 
the type of economic and political reforms in the region that will 
ultimately make traditional assistance unnecessary.

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