[Congressional Record Volume 147, Number 14 (Thursday, February 1, 2001)]
[Extensions of Remarks]
[Pages E100-E101]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            RESPONSIBLE DEBT RELIEF AND DEMOCRACY REFORM ACT

                                 ______
                                 

                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                      Wednesday, January 31, 2001

  Mr. WOLF. Mr. Speaker, today I am reintroducing the Responsible Debt 
Relief and Democracy Reform Act. This legislation, which I first 
introduced in the 106th Congress, is intended to provide debt relief to 
poor countries that have an insurmountable debt burden and to encourage 
these same countries to implement reforms for sound democracy and the 
maintenance of a civil society.
  Having just returned from a trip to Central Africa where I visited 
the Democratic Republic of the Congo, Rwanda, Burundi, and Sudan, I am 
convinced that responsibly provided debt relief to the poorest 
countries of the world is one of the best ways to help the poor and the 
suffering.
  The countries I recently visited are among the poorest of the world. 
Life in those countries and throughout Africa is not easy. Death, 
famine, disease and pain are a constant as millions struggle to survive 
another day. A recent report by the United Nations says that 180 
million people in sub-Saharan Africa are undernourished. Some children 
go days without a meal. Malnourishment lowers immune systems and 
horrible diseases take hold.
  The AIDS virus is reaching epidemic proportions. Seventy percent of 
the world's AIDS cases are in Africa where more than 16,000 people a 
day are infected. More than 2 million Africans died of AIDS in 2000. 
There are 16 African countries where more than 10 percent of the adult 
population is infected with AIDS.
  Hunger and disease lead the list as the major crises facing the 
poorest countries of the world. But there are also other similar 
characteristics: most of these countries struggle with democracy or 
with bad governance; they also are caught in a downward spiral of debt, 
causing difficult and uncertain futures.
  Many of the poorest countries must spend an exorbitant amount of 
their budgets simply to make their debt payments. The rock singer, 
Bono, a vocal advocate for providing debt relief to heavily indebted 
poor countries, says, ``A country like Niger, with a life expectancy of 
47 years, spends more paying off their debts than on health and 
education combined.''
  Indeed, a country like Niger is not alone. Debt payments can consume 
as much as 30-40 percent of a poor country's revenue. The chances of 
these countries ever paying back their loans is slim to none. 
Realistically, none of heir debt is going to be repaid.
  The poor countries of the world have an alarmingly low life 
expectancy rate, with reports indicating that the average person in 
Sierra Leone only lives for 27 years. Canceling or reducing the debt of 
the poorest countries of the world is an opportunity for the U.S. to 
alleviate the suffering that these people face. Unfortunately, many of 
these poor countries facing insurmountable debt and needing democratic 
reform are in Africa.
  The new Bush Administration has a unique opportunity to make a 
difference in Africa. Throughout my trip, the constant refrain I heard 
was that the United States just needed to show it cared. No one asked 
for American troops to be deployed. They just want America to send a 
signal that it will begin to focus on the plight of Africa before 
another generation of young people is lost to civil war, famine, 
disease and AIDS.
  The U.S. can help provide hope and opportunity for those who may be 
hopeless. Providing debt relief to the poorest governments of the 
world, if done in the right way, can free these governments to better 
address the needs of their own people.
  But simply canceling a country's debt doesn't necessarily pave the 
way to good government. The governments of poor countries are often 
part of the problem. For a variety of reasons, poorly run governments 
frequently stand in the way of alleviating poverty or sickness or of 
providing hope and opportunity to the poorest of the poor.
  That is why the legislation I propose today will provide incentives 
to countries to reform their governments, to institute needed 
democratic reforms and basic structures of a civil society such as, 
respect for human rights, promoting religious freedom, freedom of the 
press, and freedom of association.
  The legislation says that debt by the U.S. will be provided to 
countries that meet the following requirements, as determined by the 
President of the U.S.:
  Freedom of the press.
  Freedom of association.
  An independent and non-discriminatory judiciary.
  Reduction or elimination of corruption relating to public officials, 
including the promulgation of laws prohibiting bribery of public 
officials and disclosure of assets by such officials; the establishment 
of an independent anti-corruption commission; the establishment of an 
independent agency to audit financial activities of public officials.
  Free and fair elections.
  Practice of internationally recognized human rights.
  Opposition to international terrorism as determined by the Secretary 
of State.
  The President may waive one or more of these requirements for 
emergency humanitarian relief purposes, if the President determines and 
certifies to Congress that it is in the national security interests of 
the U.S., or if the President determines that a recipient country is 
making demonstrable progress in the aforementioned areas.
  The President is to notify Congress of the justification for the 
determination of the countries that will receive a cancellation or 
reduction of debt according to the conditions in this legislation.
  Finally, this legislation conveys the sense of Congress that the 
President should instruct the U.S. director at each international 
financial institution to which the U.S. is a member to use the voice, 
vote, and influence of the U.S. to urge the cancellation or reduction 
of debt owed to the institution by a country only if the country meets 
the same requirements applicable in this legislation.
  We need to help the poorest countries overcome their debt burdens but 
it must be done responsibly. We must ensure that a dictator's pockets 
are not lined as a result of debt relief. That is why this legislation 
sets up a framework to help the poorest nations of the world in their 
struggle toward democracy, rather than just simply writing off their 
debt. This legislation says progress in democratic reforms, honoring 
human rights, and opposition to terrorism are important for developing 
our poor countries. It says that one of the ways to help the poor is to 
give them opportunities created by engendering democracy, transparency, 
and much needed relief from their country's overwhelming debt burden. 
Lastly it says that if those goals are met, the U.S. will help those 
countries struggling to help their citizens to a better, more 
prosperous life.
  Mr. Speaker, while this legislation may not be the perfect answer, I 
am hopeful it will provide the foundation for discussion on how to help 
the poor and give them opportunities so that the 107th Congress and the 
Bush Administration can deal with this important issue. I urge my 
colleagues to join me in co-sponsoring this bill.

                                 H.R.--

       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 ``Responsible Debt Relief and 
     Democracy Reform Act''.

     SEC. 2. ADDITIONAL REQUIREMENTS FOR CANCELLATION OR REDUCTION 
                   OF DEBT OWED TO THE UNITED STATES.

       The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) 
     is amended by adding at the end the following:
  ``PART VI--ADDITIONAL REQUIREMENTS FOR CANCELLATION OR REDUCTION OF 
                     DEBT OWED TO THE UNITED STATES

     ``SEC. 901 CANCELLATION OR REDUCTION OF DEBT.

       ``Beginning on and after the date of the enactment of this 
     part, the President may cancel or reduce amounts owed to the 
     United

[[Page E101]]

     States (or any agency of the United States) by foreign 
     countries as a result of concessional or nonconcessional 
     loans made, guarantees issued, or credits extended under any 
     other provision of law only if, in addition to the 
     requirements contained under the applicable provisions of law 
     providing authority for the debt cancellation or reduction, 
     the requirements contained in section 902 are satisfied.

     ``SEC. 902 ADDITIONAL REQUIREMENTS.

       ``(a) In General.--A foreign country shall be eligible for 
     cancellation or reduction of debt under any other provision 
     of law only if the government of the country--
       ``(1) ensures freedom of the press;
       ``(2) ensures freedom of association;
       ``(3) has established an independent and non-discriminatory 
     judiciary;
       ``(4) provides for the reduction or elimination of 
     corruption relating to public officials, including--
       ``(A) the promulgation of laws to prohibit bribery of and 
     by public officials, including disclosure of assets by such 
     officials upon taking office, periodically while in office, 
     and upon leaving office;
       ``(B) the establishment of an independent anti-corruption 
     commission--
       ``(i) to receive and verify the disclosure of assets by 
     public officials in accordance with subparagraph (A); and
       ``(ii) to investigate allegations or corruption or 
     misconduct by public officials and to make all findings 
     available to the appropriate administrative or judicial 
     entries; and
       ``(C) the establishment of an independent agency--
       ``(i) to audit the financial activities of public officials 
     and agencies; and
       ``(ii) to make all aduits under clause (i) available to the 
     appropriate administrative or judicial entities;
       ``(5) is elected through free and fair elections;
       ``(6) does not engage in a consistent pattern of gross 
     violations of internationally recognized human rights; and
       ``(7) does not repeatedly provided support for acts of 
     international terrorism, as determined by the Secretary of 
     State under section 6(j)(1) of the Export Administration Act 
     of 1979 (50 U.S.C. App. 2405(j)(1)) or section 620A(a) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)).
       ``(b) Exceptions.--The President may waive the application 
     of 1 or more of the requirements of subsection (a) with 
     respect to the cancellation or reduction of debt owed to the 
     United States by a foreign country--
       ``(1) for emergency humanitarian relief purposes;
       ``(2) if the President determines that it is in the 
     national security interests of the United States to do so or
       ``(3) if the President determines that the foreign country 
     is making demonstrable progress in meeting the requirements 
     of paragraphs (1) through (7) of subsection (a) by adopting 
     appropriate legal and other related reforms.
       ``(c) Congressional Notification.--Not later than 7 days 
     prior to the cancellation or reduction of debt in accordance 
     with section 901, the President shall transmit to the 
     Congress a report that contains a justification for the 
     determination by the President that--
       ``(1) the requirements contained in each of paragraphs (1) 
     through (7) of subsection (a) have been satisfied with 
     respect to the foreign country involved; or
       ``(2) the requirement of paragraph (1), (2), or (3) of 
     subsection (b) has been satisfied with respect to the foreign 
     country involved.''.

     SEC. 3. SENSE OF THE CONGRESS RELATING TO CANCELLATION OR 
                   REDUCTION OF MULTILATERAL DEBT.

       It is the sense of the Congress of the President should 
     instruct the United States Executive Director at each 
     international financial institution to which the United 
     States is a member to use the voice, vote, and influence of 
     the United States to urge that the cancellation or reduction 
     of debt owed to the institution by a country may be provided 
     only if the country meets the same requirements applicable to 
     the cancellation or reduction of amounts owed to the United 
     States under paragraphs (1) through (7) of section 902(b) of 
     the Foreign Assistance Act of 1961 (as added by section 2).

     

                          ____________________