[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.

       ``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 focus on poverty alleviation, 
     economic growth, increased productivity, sustainable 
     development, environmental protection, labor rights, and an 
     increased focus on education.''.

     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

[[Page H1990]]

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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