Congressional Record, Volume 148 Issue 52 (Wednesday, May 1, 2002)

[Congressional Record Volume 148, Number 52 (Wednesday, May 1, 2002)]
[House]
[Pages H1986-H1990]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

MULTINATIONAL DEVELOPMENT BANKS AUTHORIZATION ACT

Mr. OXLEY. Mr. Speaker, pursuant to the previous order of the House,
I move to suspend the rules and pass the bill (H.R. 2604) to authorize
the United States to participate in and contribute to the seventh
replenishment of the resources of the Asian Development Fund and the
fifth replenishment of the resources of the International Fund for
Agricultural Development, and to set forth additional policies of the
United States toward the African Development Bank, the African
Development Fund, the Asian Development Bank, the Inter-American
Development Bank, and the European Bank for Reconstruction and
Development, as amended.
The Clerk read as follows:

H.R. 2604

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. UNITED STATES CONTRIBUTION TO THE SEVENTH
REPLENISHMENT OF THE RESOURCES OF THE ASIAN
DEVELOPMENT FUND.

The Asian Development Bank Act (22 U.S.C. 285-285aa) is
amended by adding at the end the following:

``SEC. 31. SEVENTH REPLENISHMENT.

``(a) Contribution Authority.--
``(1) In general.--The United States Governor of the Bank
may contribute on behalf of the United States $412,000,000 to
the Asian Development Fund, a special fund of the Bank.
``(2) Subject to appropriations.--The authority provided by
paragraph (1) shall be effective only to such extent or in
such amounts as are provided in advance in appropriations
Acts.
``(b) Limitations on Authorization of Appropriations.--For
contribution authorized by subsection (a), there are
authorized to be appropriated to the Secretary of the
Treasury not more than $412,000,000, without fiscal year
limitation.''.

SEC. 2. UNITED STATES CONTRIBUTION TO THE FIFTH REPLENISHMENT
OF THE RESOURCES OF THE INTERNATIONAL FUND FOR
AGRICULTURAL DEVELOPMENT.

(a) Contribution Authority.--
(1) In general.--The United States Governor of the
International Fund for Agricultural Development may
contribute on behalf of the United States $30,000,000 to the
International Fund for Agricultural Development.
(2) Subject to appropriations.--The authority provided by
paragraph (1) shall be effective only to such extent or in
such amounts as are provided in advance in appropriations
Acts.
(b) Limitations on Authorization of Appropriations.--For
contribution authorized by subsection (a), there are
authorized to be appropriated to the Secretary of the
Treasury not more than $30,000,000, without fiscal year
limitation.
(c) Report on Participation of the IFAD in the Enhanced
HIPC Initiative.--Within 3 months after the date of the
enactment of this Act, the Secretary of the Treasury shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Foreign Relations of
the Senate a report on the participation of the
International Fund for Agricultural Development in the
Enhanced HIPC Initiative. The report shall include a
statement of the cost to the International Fund for
Agricultural Development of participating in the Enhanced
HIPC Initiative, the effects of such participation (if not
reimbursed) on current and future programs of the
International Fund for Agricultural Development, the
feasibility of allowing the World Bank HIPC Trust Fund to
reimburse the International Fund for Agricultural
Development for the costs of such participation, and the
amount of additional appropriations from the United States
to the World Bank HIPC Trust Fund that would be necessary
to allow such participation.

SEC. 3. HIV/AIDS STRATEGIC PLAN.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is amended by adding at the end the
following:

``SEC. 1625. HIV/AIDS STRATEGIC PLAN.

``The Secretary of the Treasury shall instruct the United
States Executive Directors at the African Development Bank,
the African Development Fund, the Asian Development Bank, the
Asian Development Fund, a special fund of the Asian
Development Bank, and the Inter-American Development Bank,
and the United States Governor of the International Fund for
Agricultural Development to support continued efforts by such
institutions as appropriate in regard to HIV/AIDS,
tuberculosis, malaria, and other infectious diseases,
including--
``(1) development and implementation of a strategic plan to
fight against the spread of HIV/AIDS, tuberculosis, malaria,
and other infectious diseases;
``(2) integration of HIV/AIDS, tuberculosis, malaria, and
other infectious diseases activities in ongoing projects as
appropriate, development of new dedicated HIV/AIDS,
tuberculosis, malaria, and other infectious diseases,
projects as appropriate that take into consideration the
institution's mandate and core strengths, and the building of
AIDS-mitigation measures into other projects;
``(3) design and implementation of HIV/AIDS, tuberculosis,
malaria, and other infectious diseases impact assessment
criteria into environmental and social assessment processes
that the institution considers when designing and evaluating
new project proposals;
``(4) work on disseminating information on best practices
and project design for HIV/AIDS, tuberculosis, malaria, and
other infectious diseases projects; and
``(5) support training for professional staff on HIV/AIDS,
tuberculosis, malaria, and other infectious disease
prevention issues to ensure that these health-related
concerns are integrated into all aspects of the work of the
institution.''.

SEC. 4. USER FEES.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is further amended by adding at the
end the following:

``SEC. 1626. USER FEES.

``The Secretary of the Treasury shall instruct the United
States Executive Director at the African Development Bank,
the African Development Fund, the Asian Development Bank, the
Asian Development Fund, a special fund of the Asian
Development Bank, and the Inter-American Development Bank,
and the United States Governor of the International Fund for
Agricultural Development to oppose any loan, grant, document,
or strategy that is subject to endorsement or approval by the
board of directors of any such institution, which includes
user fees or service charges in impoverished countries
directly or under the guise of community financing, cost-
sharing, or cost recovery mechanisms, for primary education
or primary health care, including prevention and treatment
efforts for HIV/AIDS, malaria, tuberculosis, and infant,
child, and maternal well-being.''.

SEC. 5. TRANSPARENCY.

(a) United States Policy in Regional Mulitlateral
Development Institutions.--Title XV of the International
Financial Institutions Act (22 U.S.C. 262o--262o-2) is
further amended by adding at the end the following:

``SEC. 1504. TRANSPARENCY.

``(a) In General.--The Secretary of the Treasury shall
instruct the United States Executive Director at the African
Development Bank, the African Development Fund, the Asian
Development Bank, the Asian Development Fund, a special fund
of the Asian Development Bank, the Inter-American Development
Bank, and the European Bank for Reconstruction and
Development, and the United States Governor of the
International Fund for Agricultural Development to--
``(1) continue to make efforts to promote greater
transparency regarding the activities of such institutions,
including project design, project monitoring and evaluation,
project implementation, resource allocation, and
decisionmaking;
``(2) support continued efforts to allow informed
participation and input by affected communities, including
translation of information on proposed projects, providing
information through information technology applications, oral
briefings, and outreach to and dialogue with community
organizations and institutions in affected areas; and
``(3) work toward ensuring that--
``(A) meetings of the Boards of Directors (or, in the case
of the International Fund for Agricultural Development, the
Board of Governors) of their respective institutions are open
to the public and the media, except for discussion of
sensitive matters such as individual personnel matters;
``(B) transcripts of such meetings are available to the
public no later than 60 calendar days after the meetings,
except for discussion of sensitive matters such as individual
personnel matters; and
``(C) all key documents that are presented for endorsement
or approval by the Board of Directors (or, in the case of the
International Fund for Agricultural Development, the Board of
Governors) of their respective institutions will be made
available to the public at least 15 days before
consideration by the Board.
``(b) Statement of Goals.--The Secretary of the Treasury
shall instruct the United States Executive Director at the
African Development Bank, the African Development Fund, the
Asian Development Bank, the Asian Development Fund, a special
fund of the Asian Development Bank, the Inter-American
Development Bank, and the European Bank for Reconstruction
and Development, and the United States Governor of the
International Fund for Agricultural Development to inform
their respective institutions of the goals enumerated in
subsection (a), in a manner that the Secretary of the
Treasury deems appropriate.''.
(b) Congressional Testimony Required.--The United States
Executive Directors at the African Development Bank, the
African Development Fund, the Asian Development Bank, the
Asian Development Fund, a special fund of the Asian
Development Bank, the Inter-American Development Bank, and
the European Bank for Reconstruction and Development, and the
United States Governor of the International Fund for
Agricultural Development shall, at the request of the
Committee on Financial Services of the House of
Representatives or of the Committee on Foreign Relations of
the Senate appear before the committee making the request, on
an annual basis, and testify on the efforts undertaken
pursuant to section 1504 of the International Financial
Institutions Act and on other matters relating to any such
institution.
(c) Grants.--
(1) In general.--The Secretary of the Treasury may make
grants in such amounts as the

[[Page H1987]]

Secretary deems appropriate to any institution specified in
paragraph (2) which--
(A) has implemented the measures described in section 1504
of the International Financial Institutions Act; and
(B) provides assurances to the Secretary that the
institution will use the grant solely for transparency
activities.
(2) Institutions.--The institutions specified in this
paragraph are the African Development Bank, the African
Development Fund, the Asian Development Bank, the Asian
Development Fund, a special fund of the Asian Development
Bank, the Inter-American Development Bank, the European Bank
for Reconstruction and Development, and the International
Fund for Agricultural Development.
(3) Limitations on authorization of appropriations.--For
grants under this subsection, there are authorized to be
appropriated to the Secretary of the Treasury not more than
$10,000,000 for fiscal year 2002.
(d) Congressional Pursuit of Transparency Goals in
Interparliamentary Dialogues and Meetings.--The Congress
shall pursue the transparency goals described in section 1504
of the International Financial Institutions Act, in all
official interparliamentary dialogues and meetings as
appropriate.
(e) Pursuit of Transparency Goals by the Secretary of the
Treasury.--The Secretary of the Treasury shall submit
annually to the Committee on Financial Services of the House
of Representatives and the Committee on Foreign Relations of
the Senate a written report detailing the steps that have
been taken by the United States Executive Directors at the
institutions, by the finance ministers, and by the
institutions, referred to in paragraph (1) to implement the
measures described in such section 1504.

SEC. 6. GENERAL OBJECTIVES.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is further amended by adding at the
end the following:

``SEC. 1627. GENERAL OBJECTIVES.

SEC. 7. REQUIREMENTS FOR FINANCIAL SUPPORT FOR DAMS.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is further amended by adding at the
end the following:

``SEC. 1628. REQUIREMENTS FOR FINANCIAL SUPPORT FOR DAMS.

``The Secretary of the Treasury shall instruct the United
States Executive Directors at the African Development Bank,
the African Development Fund, the Asian Development Bank, the
Asian Development Fund, a special fund of the Asian
Development Bank, and the Inter-American Development Bank,
and the United States Governor of the International Fund for
Agricultural Development to oppose any loan which provides
support for any project that includes a dam unless the
project conforms to all of the following terms:
``(1) Comprehensive and participatory assessments of the
energy, water, and flood management needs to be met and
different options for meeting these needs are developed
before detailed studies are done on any specific project.
``(2) Priority is given to demand side management measures
and optimizing the performance of existing infrastructure
before building any new projects.
``(3) No dam is built without full consultation with
affected people.
``(4) Periodic participatory reviews are done for existing
dams to assess issues including dam safety, and the
possibility of dam decommissioning.
``(5) Mechanisms are developed to provide social
compensation for those who are suffering the impacts of dams,
and to restore damaged ecosystems.''.

SEC. 8. STUDY BY THE GENERAL ACCOUNTING OFFICE.

Within 1 year after the date of the enactment of this Act,
the Comptroller General of the United States shall prepare
and submit to the Committee on Financial Services of the
House of Representatives and the Committee on Foreign
Relations of the Senate a report on the benefits and costs of
the African Development Fund, the Asian Development Fund, a
special fund of the Asian Development Bank, the International
Fund for Agricultural Development, and the Fund for Special
Operations of the Inter-American Development Bank,
providing grants instead of loans.

SEC. 9. COMMENDATION.

(a) Findings.--The Congress finds that--
(1) the African Development Bank and Fund elected Omar
Kabbaj, an official of the Ministry of Finance of Morocco, as
the new President in 1995;
(2) President Kabbaj implemented successful fiscal and
managerial reforms, including refocusing the activity of the
African Development Fund on poverty alleviation;
(3) under the leadership of President Kabbaj, the African
Development Bank began to issue yearly portfolio status
reports reflecting improved project monitoring and
supervision;
(4) President Kabbaj successfully emphasized the importance
of project post-evaluation in helping the Bank avoid problems
identified with earlier funded projects;
(5) President Kabbaj has taken a program approach where all
stakeholders, including the beneficiaries of the borrower
countries, are involved in program design and implementation;
(6) President Kabbaj was unanimously appointed to a second
5-year term in May 2000; and
(7) under the leadership of President Kabbaj, on June 6,
2001, Standard & Poor's revised the outlook on its AA+ long
term issuer ratings of the African Development Bank to stable
from negative.
(b) Commendation.--The Congress, on behalf of the people of
the United States, commends President Omar Kabbaj for his
successful reform efforts as President of the African
Development Bank and Fund, and encourages his continued
efforts at reform.

SEC. 10. ACTION BY THE PRESIDENT.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is further amended by adding at the
end the following:

``SEC. 1629. ACTION BY THE PRESIDENT.

``If the President determines that a foreign country has
taken or has committed to take actions that either contribute
or do not contribute to efforts of the United States to
respond to, deter, or prevent acts of international
terrorism, the Secretary of the Treasury may, consistent with
other applicable law, instruct the United States Executive
Director at, or the United States Governor of, the regional
multilateral devlopment bank to take the determination into
account in considering whether to approve an application of
the country for assistance from the institution.''.

SEC. 11. SENSE OF THE CONGRESS REGARDING PRIVATIZATION
PROJECTS.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is further amended by adding at the
end the following:

``SEC. 1630. SENSE OF THE CONGRESS REGARDING PRIVATIZATION
PROJECTS.

``The Secretary of the Treasury should instruct the United
States Executive Director at the Asian Development Bank, the
African Development Bank, the African Development Fund, the
International Fund for Agricultural Development, the Inter-
American Development Bank, and the European Bank for
Reconstruction and Development, and the United States
Governor of the International Fund for Agricultural
Development to use the voice and vote of the United States to
oppose the provision by the respective institution of
assistance for a project that involves privatization of a
government-held industry or sector if--
``(1) the privatization transaction is not implemented in a
transparent manner;
``(2) the privatization transaction is not implemented in a
manner that adequately protects the interests of workers,
small investors, and vulnerable groups in society to the
extent that they are affected by the privatization
transaction; or
``(3) appropriate regulatory regimes have not been
established to ensure the proper function of competitive
markets in the industry or sector.''.

SEC. 12. OPPOSITION OF UNITED STATES TO REDUCTION OF MINIMUM
WAGE BELOW INTERNATIONALLY RECOGNIZED LEVEL OF
POVERTY.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is further amended by adding at the
end the following:

``SEC. 1631. OPPOSITION OF UNITED STATES TO REDUCTION OF
MINIMUM WAGE BELOW INTERNATIONALLY RECOGNIZED
LEVEL OF POVERTY.

``The Secretary of the Treasury shall instruct the United
States Executive Director at the African Development Bank,
the African Development Fund, the Asian Development Bank, the
Asian Development Fund, a special fund of the Asian
Development Bank, the Inter-American Development Bank, and
the European Bank for Reconstruction and Development, and the
United States Governor of the International Fund for
Agricultural Development to oppose any loan, grant, document,
or strategy that is subject to endorsement or approval by the
board of directors of any such institution, which includes
any provision that would recommend or encourage the reduction
of a country's minimum wage to a level of less than $2.00 per
day.''.

SEC. 13. SUPPORT FOR ASIAN DEVELOPMENT FUND ASSISTANCE FOR
PROJECTS THAT ARE DIRECTED AT ADDRESSING
ARSENIC CONTAMINATION IN DRINKING WATER IN
SOUTH ASIA.

Title XVI of the International Financial Institutions Act
(22 U.S.C. 262p--262p-7) is further amended by adding at the
end the following:

``SEC. 1632. SUPPORT FOR PROJECTS THAT ARE DIRECTED AT
ADDRESSING ARSENIC CONTAMINATION IN DRINKING
WATER IN SOUTH ASIA.

``The Secretary of the Treasury shall instruct the United
States Executive Director at the Asian Development Fund, a
special fund of the Asian Development Bank, to use the voice
and vote of the United States to support projects that are
directed at addressing arsenic contamination in drinking
water in South Asia.''.

{time} 1330

The SPEAKER pro tempore (Mr. LaHood). Pursuant to the rule, the
gentleman from Ohio (Mr. Oxley) and the gentleman from Vermont (Mr.
Sanders) each will control 20 minutes.
The Chair recognizes the gentleman from Ohio (Mr. Oxley).

General Leave

Mr. OXLEY. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and to insert extraneous material on the bill under consideration.

[[Page H1988]]

The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. OXLEY. Mr. Speaker, I yield myself 5 minutes.
Mr. Speaker, I rise today in support of H.R. 2604. This measure
authorizes U.S. contributions of $412 million to the Asian Development
Fund and $30 million to the International Fund for Agricultural
Development for the replenishment of these two institutions.
These authorizations reflect the U.S. commitment to promote
development in the poorest countries in the world. By encouraging
development, fostering better health care and promoting education, we
have the ability to improve living conditions and reduce global
poverty.
I urge my colleagues to support these programs and to fulfill the
U.S. commitment to these two key development institutions.
The Asian Development Fund is the concessional lending arm of the
Asian Development Bank which provides loans to developing member
countries with low per capita income and limited debt repayment
capacities. Funds from this institution are used to build
infrastructure projects, support health care services and promote
education in the Asia Pacific region.
Created in 1973, the Asian Development Fund is funded by periodic
replenishments. Last September, at the latest replenishment
negotiations, the United States subscribed to a 4-year, $412 million
contribution, roughly 14.4 percent of the total contributions.
The International Fund for Agricultural Development has a specific
functional mandate to combat hunger and rural poverty in developing
countries. Created in 1977 in the wake of the 1974 World Food
Conference and the highly publicized famines of the 1970s in Africa,
this finances projects covering everything from draught-resistant crops
and management of livestock to marketing and microfinance. With nearly
three-quarters of the world's 1.2 billion poorest people living in
rural areas, the fund provides aid to small farmers, the rural
landless, nomads, fishermen, indigenous peoples and rural poor women.
Mr. Speaker, H.R. 2604 fulfills our commitment to these institutions,
and it makes important policy changes in how the U.S. executive
directors at all of the international development institutions should
work to influence policies of these institutions.
Some highlights of the legislation include: Language which works to
combat HIV/AIDS, tuberculosis, malaria and other infectious diseases in
developing countries; opposition to the application of user fees or
service charges in impoverished countries directly or indirectly for
primary education or primary health care.
This bill also encourages transparency in the operation of the
development institutions affected by this legislation.
This is an important measure. It will affirm the U.S. commitment to
reducing global poverty and encourage development. I want to thank the
Subcommittee on International Monetary Policy and Trade chairman, the
gentleman from Nebraska (Mr. Bereuter), for all his hard work on this
bill, and I strongly encourage my colleagues to support this
legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. SANDERS. Mr. Speaker, I yield myself such time as I may consume.
As the ranking member of the Subcommittee on International Monetary
Policy and Trade, I rise in strong support of H.R. 2604, the
Multinational Development Banks Authorization Act. I want to thank the
subcommittee chairman, the gentleman from Nebraska (Mr. Bereuter), for
working in a bipartisan manner on this bill and for the way he has
reached out to Members on this side of the aisle in drafting the bill.
I am pleased to support this bill, Mr. Speaker, because it addresses
two very important issues at the regional development banks:
transparency and user fees. The regional development banks are from
among the most powerful institutions of the world with effective
control over the economy of some of the poorest nations in the world,
and yet these institutions make major decisions affecting the lives of
hundreds of millions of the most vulnerable people on this planet, as
well as working people throughout the world, in almost total secrecy.
This bill includes significant provisions to make the regional
development banks more open and more accountable to the public. It
requires the Secretary of the Treasury to instruct U.S. executive
directors at the multilateral development banks to work towards opening
the meetings of the boards of directors to the public and the media;
making transcripts of executive board meetings available within 60 days
of the meetings; and making all key documents that are to be used or to
be considered by the executive boards available to the public before
those documents are considered.
In addition, to make sure that the Treasury Department and U.S.
executive directors at the multilateral development banks vigorously
pursue these reforms, the bill includes a requirement that the U.S.
executive directors must testify every year before the Committee on
Financial Services on the efforts they have made to achieve these
reforms.
Mr. Speaker, it is imperative that we work to make these
international financial institutions more open and more accountable to
the public. Without that transparency, it is impossible even for
Congress to know if the laws we pass are being observed at these
institutions.
That brings me to the second issue this bill addresses, user fees.
This bill strengthens current law which requires U.S. executive
directors at the regional development banks to oppose the imposition of
user fees and service charges on primary education and primary health
care, including prevention and treatment efforts for HIV/AIDS, malaria,
tuberculosis and infant, child and maternal health. In other words, for
the poorest people in the world, we want to make sure that health
access and educational access is available without user fees.
The current law on user fees includes several loopholes which the
U.S. Treasury Department has unfortunately exploited. This bill closes
those loopholes. For example, the Treasury Department has interpreted
current law to require U.S. executive directors to oppose user fees
only when they are part of a loan. This bill makes it clear that U.S.
executive directors must oppose user fees in any loan, grant, document
or strategy adopted by the regional development banks.
In addition, the Treasury Department interpreted law to apply unless
the user fee provides an exemption for poor people; but exemptions for
poor people, especially in impoverished countries, do not work. User
fees discourage poor people from seeking primary health care and
sending their kids to school because the poor are often not told about
poverty exemptions and local officials often have an incentive to
collect as many fees as possible. This bill makes it clear that U.S.
executive directors must oppose user fees in impoverished countries as
a whole. That is a major step forward.
In impoverished countries throughout the world there is documented
evidence that user fees prevent people from sending their children to
school and seeking medical care.
In Zambia, a researcher witnessed the arrival of a 14-year-old boy at
a hospital, suffering from acute malaria. His parents were unable to
pay the registration fee, which was equivalent to 33 American cents,
but they were unable to afford that, and the boy was turned away.
Within two hours the child was brought back dead.
In Kenya, the introduction of fees for patients of Nairobi's Special
Treatment Clinic for Sexually Transmitted Diseases resulted in a
decrease in attendance of 40 percent for men and 65 percent for women.
In Zimbabwe, there are reports of girls going into prostitution to
pay school fees.
In Ghana, 77 percent of street children in the capital city dropped
out of school because of inability to pay these fees.
It is essential that our country stop supporting the imposition of
user fees on primary education and health care in impoverished
countries and that we make the regional development banks more open and
more accountable to the public. For these reasons, Mr. Speaker, I am
pleased to support this bill, and I look forward to working with the
subcommittee chairman, the gentleman

[[Page H1989]]

from Nebraska (Mr. Bereuter), to see that it is enacted into law.
Mr. Speaker, I reserve the balance of my time.
Mr. OXLEY. Mr. Speaker, I ask unanimous consent that the remaining
time be controlled by the gentleman from Nebraska (Mr. Bereuter).
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
(Mr. BEREUTER asked and was given permission to revise and extend his
remarks.)
Mr. BEREUTER. Mr. Speaker, first of all, I want to thank the
distinguished chairman and ranking member of the committee for their
support and assistance in moving this legislation. And to the ranking
member of the subcommittee, the gentleman from Vermont (Mr. Sanders), I
say that I very much appreciate his constructive help throughout this
process.
The product we have before us, I think, should give pride to an
authorizing committee and indeed to the House as it considers it. It
has the input of a number of Members throughout our subcommittee and
committee, and their efforts have been incorporated in this
legislation.
The bill we have before us and the bill just passed by the House have
been linked by this Member as we proceeded through the process in
subcommittee and committee. Many of the amendments that Members might
have wanted to make for regional development banks also could have been
offered in some ways to the Export-Import Bank, but not as
appropriately, and so this has been an opportunity for Members to have
worked together on the two bills.
Previously the administration made authorization requests for both
the Asian Development Fund, and IFAD, the International Fund for
Agriculture Development. Therefore, during a June 11 hearing last year
before the subcommittee, we considered the regional multilateral
financial development institutions, and a representative of the
Treasury testified in support of these two authorization requests.
The Asian Development Fund, of which the U.S. is a non-regional
member, is a concessional arm of the Asian Development Bank. The fund
offers loans with interest rates of 1 percent to 1\1/2\ percent to the
poorest countries in Asia. In September 2000, the U.S. agreed to a 4-
year, $412 million contribution as a seventh replenishment contribution
from this country to the Asian Development Fund, and section 1 takes
the administration's request for this $412 million authorization for
the Asian Development Fund.
Furthermore, IFAD provides loans and grants for agricultural and
rural development projects for the world's poor living in rural areas,
of which almost 75 percent of the world's 1.2 billion poorest people do
live in such poor areas. Moreover, approximately two-thirds of IFAD
loans are concessional. Section 2 of H.R. 2604 provides an
authorization of $30 million for the fifth replenishment of IFAD which
equals the administration's request.
Mr. Speaker, I would like to highlight about 5 or 6 points in the
legislation. First, with respect to the subject of HIV/AIDS, during the
subcommittee's hearings on May 15, a representative of the United
Nations provided the subcommittee with an estimate that 36 million
people are now living with HIV/AIDS, with 70 percent of those people
residing in Sub-Saharan Africa. In order to address the HIV/AIDS
epidemic, section 3 of this legislation instructs the U.S. executive
directors of the different relevant regional multilateral development
institutions, among other things, to support the integration of HIV/
AIDS and other infectious disease strategies and training into the
priorities and programs of the respective institutions.
Many Members are interested and were involved in this issue, but I
give special credit to the gentlewoman from California (Ms. Waters) for
her leadership on this subject.
Second, with regard to the imposition of user fees, it must be noted
that strong opposition and concern existed within the subcommittee to
the imposition of certain user fees, and that was expressed at our
April 25, 2001, hearing on the African Development Bank and fund.
Therefore, section 4 of this bill instructs the U.S. executive
directors of the different relevant regional multilateral development
institutions to oppose any loan, grant, document or strategy that is
subject to the endorsement or approval of the board of the institution
which includes user fees in impoverished countries for the purposes of
primary education and primary health care. No user fees for those
subjects.
Third, section 5 addresses the very important topic of transparency,
to which the distinguished gentleman from Vermont (Mr. Sanders) gave
special attention and for which he spoke a few minutes ago. Currently
the regional development institutions do not have public meetings; nor
are the transcript of their meetings typically made available to the
public. Much of the lack of this transparency can be attributed to the
acute lack of emphasis on transparency in governments in many foreign
countries.

{time} 1345

At the outset, I should state that it should be noted that the U.S.
Treasury officials have been one of the catalysts towards increased
efforts in transparency at these institutions. However, more emphasis
on transparency is needed at the regional multilateral development
institutions, and we have adopted a number of things in this
legislation to ensure that is the case. We have given incentives for
it, in fact. There is a $10 million authorization specifically made
available to those regional institutions that have taken important
strides to implement transparency provisions in this section.
Mr. Speaker, finally, I want to mention the African Development Bank
and Fund. This has been one of the more troubled regional institutions,
but they have been making important strides in recent times in
improvement under new leadership, and I think we have given them
encouragement to move ahead. Many Members of our subcommittee had a
particular interest in these two entities, and in these institutions
emphasizing the provision of adequate service and activities in sub-
Saharan Africa. I believe this legislation does exactly that.
Mr. Speaker, in conclusion, this Member urges his colleagues to
support H.R. 2604 since it has very important reform provisions and
because it contains authorizations for the U.S. contribution to the
Asian Development Fund and IFAD in the amounts requested by the
administration. I thank my colleagues for their continuous support on
this effort in the subcommittee and committee.
Mr. Speaker, I reserve the balance of my time.
Mr. SANDERS. Mr. Speaker, I yield such time as she may consume to the
gentlewoman from California (Ms. Waters), who has been an outstanding
leader on the Committee on Financial Services in a number of areas
including this legislation.
Ms. WATERS. Mr. Speaker, I first would like to thank my colleague
from Vermont for allocating the time, but I would further like to thank
both the chairman, the gentleman from Nebraska (Mr. Bereuter), and our
ranking member, the gentleman from Vermont (Mr. Sanders), for the
bipartisan leadership that they offer to all of us on this very
important committee and the Subcommittee on International Monetary
Policy and Trade. They have worked very well together, and I appreciate
what they have been able to produce.
I rise to express my support for H.R. 2604, the Multinational
Development Banks Authorization Act. H.R. 2604 would reauthorize U.S.
participation in the International Fund for Agricultural Development,
IFAD, and the Asian Development Bank and set forth additional policies
concerning several international financial institutions.
This bill includes provisions to promote transparency in the
operations of international financial institutions, oppose the
imposition of user fees on primary education and health care in
impoverished countries, and support efforts to stop the spread of HIV/
AIDS, tuberculosis, malaria, and other infectious diseases.
I am particularly interested in the United States participation in
IFAD. Unlike other international financial institutions which have a
broad range of objectives, IFAD has a very specific

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mandate, to eliminate hunger and world poverty in developing countries.
IFAD's target groups are the poorest of the world's poor. They include
small farmers, the rural landless, nomadic people, indigenous people,
and rural poor women. IFAD provides funding and resources to promote
economic development for these impoverished rural people.
I am especially pleased that this bill includes a provision I offered
as an amendment during the subcommittee markup on the participation of
IFAD in the Heavily Indebted Poor Countries initiative. This provision
requires the Secretary of the Treasury to submit a report to this
committee on the participation of IFAD in the HIPC initiative. I
appreciate the support of my colleagues in the Committee on Financial
Services for this provision, and I would urge my colleagues to support
this legislation.
Mr. BEREUTER. Mr. Speaker, I have no further requests for time, and I
reserve the balance of my time.
Mr. SANDERS. Mr. Speaker, I yield myself the balance of my time to
conclude by thanking the gentleman from Nebraska (Mr. Bereuter). Again,
he really did bring this legislation forward in an inclusive bipartisan
way, and I very much appreciate it and I think the results speak for
themselves. This is a very good bill. I support it.
Mr. Speaker, I yield back the balance of my time.
Mr. BEREUTER. Mr. Speaker, I yield myself the balance of my time, and
I appreciate the kind remarks of the gentleman from Vermont. They are
reciprocated. We worked well on this together, and it is a case of an
authorizing subcommittee and committee doing their job and simply not
relying on appropriators to take all of the necessary steps. I am proud
of it, and I think the House will be proud of its product coming from
the House and ultimately to passage.
Mr. LaFALCE. Mr. Speaker, I would like to commend the efforts of the
Subcommittee Chairman Doug Bereuter and the Ranking Member Bernie
Sanders on H.R. 2604, legislation to reauthorize U.S. participation in
the Asian Development Fund and the International Fund for Agricultural
Development (IFAD). The Asian Fund and the IFAD are part of a network
of regional development institutions that receive substantial support
from the United States. Though lesser known than the World Bank, these
institutions play a vital role in development efforts globally.
As we consider all possible tools at our disposal in the effort to
combat terrorism, I believe that the provision of development
assistance is a necessary element. Poverty and economic isolation are
not excuses for terrorism, but they clearly create a fertile
environment for the violence and fanaticism that characterizes
terrorist movements.
Through the development aid provided by the regional development
institutions, the United States is working to ensure that poor
countries obtain vital linkages to the global economy and that economic
opportunity in these countries is widely shared. These efforts mark not
a good anti-terrorism strategy, but also good economic policy and good
foreign policy for the United States. The Asian Development Fund, in
particular, will play a key role in the redevelopment of Afghanistan in
the coming years.
In addition to authorizing U.S. contributions to the IFAD and Asian
Development Fund, this bill includes useful language related to U.S.
goals on institutional transparency, user fees, and HIV/AIDS strategies
in the developing world. The directive on AIDS strategies is
particularly important--the AIDS crisis in the developing world remains
just as acute today as it was a year ago, and the regional development
institutions can and should play an important part in the global effort
to address this devastating pandemic.
Finally, the bill provides guidance regarding U.S. support for
privatization projects funded by the regional development institutions.
The United States has long supported privatization efforts in the
developing world, and appropriately so. This language simply provides
general principles for how privatization efforts should proceed,
recognizing the experiences of failed privatization efforts in recent
years.
Mr. WATTS of Oklahoma. Mr. Speaker, I rise in support of H.R. 2604
the Multinational Development Banks Authorization Act. I would like to
commend Mr. Oxley, the Chairman of the Financial Services Committee,
and Mr. LaFalce, the Ranking Member, and also the sponsor, Mr.
Bereuter, for crafting a bill that addresses important development
issues in those parts of our world which are struggling to end poverty,
hunger and disease and working to restructure, reform and develop their
economies for the benefit of all their citizens.
Last year I had the opportunity to travel to Africa on two occasions
with a number of my Republican and Democratic colleagues under the
auspices of the Trade-Aid Coalition which I initiated last year to
focus on the links between trade and economic reform and prosperity.
The continent of Africa faces difficult challenges, but with the help
of projects made possible by the multinational development banks, there
are clear signs of progress in many of the countries we visited.
This progress is important not only to their economies and the
American economy but also to American national security. Increased
trade with Africa will lead to a more stable region, and we need only
recall the bombings of our Embassies in Tanzania and Kenya to realize
that the nations of sub-Sahara Africa are on the front lines of our war
against terrorism.
Mr. Speaker, I would like to particularly commend the legislation for
addressing the spread of AIDS and calling for the development of a
strategic plan and professional training to attack this dreaded
disease. This is Africa's greatest challenge, but success stories there
prove that the spread of this disease can be controlled.
Additionally, I am pleased to see that the bill calls on GAO to
submit a report on the benefits and costs of providing grants to
heavily indebted countries instead of loans. Our Trade-Aid Coalition
endorses this initiative as making a lot more sense then burdening
nations with more loans when they are already fighting to pay off
crushing foreign debts.
Mr. Speaker, the world changed last September 11th. That day exposed
the fact that American security is very much reliant on stability and
poverty reduction in every corner of the world. This legislation will
reduce global poverty and increase global stability, and I urge my
colleagues to vote yes.
Mr. BEREUTER. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. LaHood). The question is on the motion
offered by the gentleman from Nebraska (Mr. Bereuter) that the House
suspend the rules and pass the bill, H.R. 2604, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.

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