[Congressional Record Volume 149, Number 85 (Wednesday, June 11, 2003)]
[Senate]
[Pages S7729-S7730]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 1240. A bill to establish the Millennium Challenge Corporation, 
and for other purposes; to the Committee on Foreign Relations.
  Mr. LUGAR. Mr. President, I rise to introduce legislation that is 
intended to unite Senators behind the President's bold new commitment 
to international development. As my colleagues are aware, the President 
has offered a plan called the Millennium Challenge Corporation that 
will focus U.S. energy and resources on countries that, while very 
poor, show commitment to economic reform and development. It is a 
unique plan that would reward and showcase what we Americans believe to 
be the essential ingredients for success: good government, investments 
in people, and a reliance on free markets.
  My colleagues on the Senate Foreign Relations Committee strongly 
supported the goals of the President's initiative and applauded his 
enthusiasm and personal commitment. But, when we considered the MCC 
legislation a few weeks ago, organizational issues divided the 
Committee. The Committee voted 11 to 8 against creating the MCC as an 
independent agency. Instead the functions of the MCC were integrated 
into the State Department.
  This outcome did not capture the President's vision of a fresh start 
for a unique approach to development assistance. The Secretary of State 
himself argued against the Committee's majority on that vote. Secretary 
Powell said that the President's plan would be best achieved through 
the establishment of an innovative, flexible, narrowly targeted and 
highly visible separate organization that can complement other 
assistance provided through more traditional means.
  I believe the Senate should work for a consensus on this issue. This 
important initiative cannot be allowed to founder on a question of 
organization.
  I have been working to develop a middle ground that will satisfy the 
basic goals of all sides. My bill creates the needed ingredients for 
interagency coordination, a top priority among a majority on the 
Committee. But it does not undermine the integrity of the President's 
concept. It puts the MCC under the authority of the Secretary of State 
and has the MCC's Chief Executive Officer report to the Secretary. It 
gives the MCC the same status within the State Department as the U.S. 
Agency for International Development, with the right to manage itself, 
hire staff, and create its own culture. It mandates coordination 
between the MCC and USAID in the field and give USAID the primary role 
in preparing countries for MCC eligibility. It also includes the 
Administrator of USAID on the MCC board to ensure that the perspective 
of USAID is considered.

  Through these means, I believe that the MCC can be substantially 
independent, as envisioned by the President, while preserving the 
leadership of the Secretary of State and the input of USAID.
  I would emphasize that the President has invested his personal 
attention and time in the MCC concept. It is rare for a President of 
either party to provide such strong leadership in the area of 
development assistance. President Bush's advocacy is critical to the 
success of this initiative. I believe Congress will regret its actions 
if we undercut this opportunity for U.S. foreign policy by failing to 
reach a workable consensus on the MCC's organization.
  I am hoping for a strong Senate vote on the MCC and will bring up my 
compromise proposal at an appropriate time. The MCC provides a way to 
focus single-mindedly on economic development that is results-based and 
meets clear benchmarks of success. We can have the coordination we seek 
while also insulating it from short-term political considerations so 
that it can focus on widening the universe of countries that live in 
peace and look to a prosperous and stable future.
  I ask unanimous consent that the two accompany pages be printed in 
the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                    Millennium Challenge Corporation


                           ORIGINAL PROPOSAL

       MCC is an independent agency.
       President of the United States--Appoints MCC Chief Exec. 
     Officer subject to advice and consent.
       MCC Board Composition--Secretary of the Treasury, Director 
     of OMB, Secretary of State, Chrman.
       MCC Board Responsibilities--Directs all MCC activities, 
     Develops indicators, Determines eligible countries, Writes 
     contracts with MCC countries, Selects proposals for funding.
       Secretary of State--Serves as Chairman of the MCC Board.
       MCC Chief Exec. Officer--Shall exercise the functions and 
     powers vested in him/her by the President and the Board.
       USAID Administrator--Role not mentioned.


                           MARKED-UP VERSION

       MCC does not exist; functions integrated into State.
       President has no direct role.
       MCC Board does not exist.
       MCC Board does not exist.
       Secretary of State--
       Coordinates all MCA assistance.
       Designates appropriate officer as coordinator.

[[Page S7730]]

       Determines eligible countries.
       Writes contracts with MCC countries.
       Coordinator/Millennium Challenge Acct.--
       Develops indicators.
       Coordinates MCA aid with other govt. agencies.
       Pursues MCA coordination with int'l donors.
       Oversees other govt. agencies doing MCA work.
       Resolves disputes amg agencies doing MCA work.
       USAID Administrator--Role not mentioned.


                               COMPROMISE

       MCC in State but has same autonomy as USAID.
       President--Same as in Original Proposal.
       MCC Board Composition.
       Secretary of the Treasury.
       Administrator of USAID.
       US Trade Representative.
       MCC Chief Exec. Officer.
       Secretary of State, Chrmn.
       MCC Board Responsibilities.
       Develops indicators.
       Determines eligible countries.
       Writes contracts with MCC countries.
       Select proposals for funding.
       Secretary of State.
       Coordinates all US foreign assistance.
       Oversees the MCC Chief Exec. Officer.
       Provides foreign policy guidance to the MCC.
       Suspends MCC assistance in certain cases.
       Serves as Chairman of the MCC Board.
       MCC Chief Exec. Officer.
       Manages the MCC.
       Serves on the MCC board.
       Coordinates MCC aid with other govt. agencies.
       Pursues MCC coordination with int'l donors.
       Oversees MCC work done by other govt. agencies.
       Resolves disputes amg. agencies doing MCC work.
       USAID Administrator.
       Sits on the MCC board.
       MCC required to coordinate with USAID in field.
       USAID has primary role in preparing countries for MCC 
     eligibility.
                                 ______