[Congressional Record Volume 150, Number 49 (Thursday, April 8, 2004)]
[Senate]
[Pages S4027-S4030]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HAGEL (for himself and Mr. Lieberman):
  S. 2305. A bill to authorize programs that support economic and 
political development in the Greater Middle East and Central Asia and 
support for three new multilateral institutions, and for other 
purposes; to the Committee on Foreign Relations.
  Mr. HAGEL. Mr. President, I rise today to introduce The Greater 
Middle East and Central Asia Development Act of 2004 with my colleague, 
Senator Lieberman. This bill supports economic and private sector 
development in the countries of the Greater Middle East and Central 
Asia.
  The terrorist attacks of September 11, 2001 signaled a turning point 
in United States foreign policy. Al-Qaida and affiliated groups have 
established a terrorist network with linkages in Afghanistan, Pakistan, 
throughout the Greater Middle East and Central Asia, and around the 
world. The war on terrorism requires that the United States consider 
the Greater Middle East and Central Asia as a strategic region with its 
own political, economic and security dynamics. While rich in cultural, 
geographic and language diversity, the Greater Middle East and Central 
Asia face common impediments to economic development and political 
freedom. Although poverty and economic underdevelopment alone do not 
``cause'' terrorism, the expansion of economic growth, free trade, and 
private sector development can contribute to an environment that 
undercuts radical political tendencies that give rise to terrorism.
  The economic problems of the Greater Middle East and Central Asia 
cannot be considered in isolation. We must work with the governments 
and peoples of the region on a cohesive program of political and 
economic reforms that builds a better future. We cannot lose the next 
generation to hopelessness and despair. Our initiatives must support 
progress toward market economies, enhanced trade, the development of 
democratic institutions, expansion of citizen-to-citizen contacts, 
educational reform, and private sector development. UN Secretary 
General Kofi Annan has said that we cannot reach the UN's goals for 
improving health, education, and living standards over the next 12 
years ``without a strong private sector in the developing countries 
themselves, to create jobs and bring prosperity.'' This region needs 
more jobs, economic growth, a vibrant private sector, and good 
governance practices to help stabilize societies and lead to a stronger 
foundation for political reform and conflict prevention.
  President Bush has committed the United States to a ``forward 
strategy of freedom'' in the Greater Middle East to combat terrorism 
and encourage reform in these countries. This is a multi-layered 
strategy, including increased spending and support for the National 
Endowment for Democracy, greater emphasis on public diplomacy, and 
initiating programs that support political liberalization and free 
markets. The G-8 summit in June and other forthcoming multi-lateral 
forums will provide opportunities to consult with our allies on many of 
these issues. Similarly, Senator Dick Lugar, chairman of the Senate 
Foreign Relations Committee, has called for a Greater Middle East 
Twenty First Century Trust as part of a program of greater engagement 
with this region, and Senator Joseph Biden, ranking member on the 
committee, has proposed a Middle East Foundation to support political 
participation and civil society in the Middle East.
  Our bill deepens and expands America's commitment to economic reform 
and private sector development in the Greater Middle East and Central 
Asia by authorizing $1 billion per year for five years and creating 
three new multilateral mechanisms: a Greater Middle East and Central 
Asia Development Bank to promote private sector development; a Greater 
Middle East and Central Asia Development Foundation to implement and 
administer economic and political programs; and a Trust for Democracy 
to provide small grants to promote development of civil society.
  These are not traditional foreign aid programs. Our legislation seeks 
to help stimulate private sector development, promote strong market 
economies, invigorate trade relations within the region, and empower 
states to rebuild and open their economies. Through a combination of 
government initiative and flexible private sector financing, we can 
bring the resources and expertise needed to launch a new beginning for 
economic development to the Greater Middle East and Central Asia. Our 
bill also encourages the State Department and other relevant government 
agencies to consider new and creative approaches to coordination of 
political and economic support for the region.
  Over the past 2 years, the United States has spent at least $120 
billion on our military efforts in Iraq and Afghanistan. Investing in 
political and economic development is equally important in order to 
achieve stability in the Greater Middle East and Central Asia. 
Promoting trade and economic growth in the region complements our 
political and diplomatic objectives in the war on terrorism. People 
need hope for better lives. We cannot succeed in our war on terrorism 
until hope replaces despair among the next generation in the Greater 
Middle East and Central Asia.
  Just this week, the editorial page of the Omaha World-Herald, my 
State's leading newspaper, supported the Bush administration's efforts 
to encourage economic openness among Muslim nations. Our bill today 
complements these worthy initiatives. Working with our allies to 
encourage free market development and political liberalization in the 
Muslim countries of the Greater Middle East and Central Asia would 
create, in the World-Herald's words, ``a win-win situation'' for the 
United States and those Muslim countries.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows;

                                S. 2305

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Greater Middle East and 
     Central Asia Development Act of 2004''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to authorize assistance for 
     political freedom and economic development, particularly 
     through private sector development, in the Greater Middle 
     East and Central Asia, including contributions to and 
     participation in 3 new entities: a Trust for Democracy, a 
     Development Foundation, and a Development Bank.

     SEC. 3. FINDINGS.

       Congress makes the following findings:
       (1) The terrorist attacks of September 11, 2001, signaled a 
     turning point in United States foreign policy.
       (2) Al Qaeda and affiliated groups have established a 
     terrorist network with linkages in Afghanistan, Pakistan, 
     throughout the Greater Middle East and Central Asia, and 
     around the world.
       (3) The war on terrorism requires that the United States 
     consider the Greater Middle East and Central Asia as a 
     strategic region with its own political, economic, and 
     security dynamics.
       (4) While rich in cultural, geographic, and language 
     diversity, the Greater Middle East and Central Asia face 
     common impediments to economic development and political 
     freedom.
       (5) Although poverty and economic underdevelopment do not 
     alone cause terrorism, the expansion of economic growth, free 
     trade, and private sector development can contribute to an 
     environment that undercuts radical political tendencies that 
     give rise to terrorism.
       (6) Given the relationship between economic and political 
     development and winning the global war on terror, America's 
     support for freedom in the Greater Middle East and Central 
     Asia must be matched with expanded and new programs of 
     partnership with the people and governments of the region to 
     promote good governance, political freedom, private sector 
     development, and more open economies.
       (7) The United States and other donors should support those 
     citizens of the Greater Middle East and Central Asia who 
     share our desire to undertake reforms that result in more 
     open political and economic systems.
       (8) Turkey, which should be supported in its aspirations 
     for membership in the European Union, plays a pivotal and 
     unique role

[[Page S4028]]

     in efforts to bring economic development and stability to the 
     Greater Middle East and Central Asia.
       (9) The President should seek new mechanisms to work 
     together with European and other nations, as well as with the 
     countries of the Greater Middle East and Central Asia to 
     promote political and economic development in the Greater 
     Middle East and Central Asia.
       (10) Because the dynamics of the Greater Middle East and 
     Central Asia have a serious impact on global security, the 
     North Atlantic Treaty Organization (NATO) should now shift 
     its strategic focus to the region, including expanded roles 
     in Iraq, Afghanistan, and the Mediterranean.

     SEC. 4. DEFINITION; SPECIAL RULE.

       (a) Greater Middle East and Central Asia Defined.--In this 
     Act, the term ``Greater Middle East and Central Asia'' means 
     the 22 nations of the Arab world (Algeria, Bahrain, Comoros, 
     Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, 
     Mauritania, Morocco, Oman, Palestine/West Bank/Gaza, Qatar, 
     Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab 
     Emirates, and Yemen), Afghanistan, Iran, Israel, Kazakhstan, 
     Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, and 
     Uzbekistan.
       (b) Special Rule.--A country listed in subsection (a) may 
     not receive assistance under this Act if such country is 
     identified as a country supporting international terrorism 
     pursuant to section 6(j)(1)(A) of the Export Administration 
     Act of 1979 (as in effect pursuant to the International 
     Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), 
     section 40(d) of the Arms Export Control Act (22 U.S.C. 
     2780(d)), section 620A of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2371), or any other provision of law.

     SEC. 5. AUTHORIZATION OF ASSISTANCE.

       Notwithstanding any other provision of law, the President 
     is authorized to provide assistance to countries of the 
     Greater Middle East and Central Asia for the purpose of 
     promoting economic and political freedoms, free trade, and 
     private sector development, including the programs described 
     in the following paragraphs:
       (1) United states contribution to and membership in a 
     greater middle east and central asia development bank.--The 
     President is authorized to work with other donors and the 
     countries of the Greater Middle East and Central Asia to 
     establish a Greater Middle East and Central Asia Development 
     Bank to promote private sector development, trade, including 
     intra-regional trade, and investment in the Greater Middle 
     East and Central Asia.
       (2) Creation of a greater middle east and central asia 
     development foundation.--The President is authorized to work 
     with other donors and the countries of the Greater Middle 
     East and Central Asia to establish a multilateral Greater 
     Middle East and Central Asia Development Foundation to assist 
     in the administration and implementation of assistance 
     programs, including public-private programs, pursuant to this 
     Act, with specific emphasis on programs at the grass-roots 
     level, to include volunteer-based organizations and other 
     nongovernmental organizations that support private sector 
     development, entrepreneurship, and development of small- and 
     medium-size enterprises and exchanges.
       (3) Creation of trust for democracy.--The President is 
     authorized to establish, together with other donors and 
     private sector and nongovernmental leaders from the Greater 
     Middle East and Central Asia, a multilateral, public-private 
     Trust for Democracy to support grass-roots development of 
     civil society, democratic reform, good governance practices, 
     and rule of law reform in the Greater Middle East and Central 
     Asia. Private foundations shall be encouraged to participate 
     in the Trust through the provision of matching funds.

     SEC. 6. SENSE OF CONGRESS REGARDING COORDINATION OF 
                   ASSISTANCE TO COUNTRIES OF THE GREATER MIDDLE 
                   EAST AND CENTRAL ASIA.

       Recognizing the importance of coordination of assistance to 
     the countries of the Greater Middle East and Central Asia, 
     and the strategic imperatives required by the war on 
     terrorism, it is the sense of Congress that--
       (1) the Secretary of State and the heads of other relevant 
     Government agencies should consider new approaches to the 
     coordination of the provision of political and economic 
     support for the countries of the Greater Middle East and 
     Central Asia; and
       (2) the Secretary of State should consider appointing a 
     Coordinator for Assistance to the Greater Middle East and 
     Central Asia.

     SEC. 7. PROGRAM REPORTS.

       (a) Requirement for Reports.--Beginning on January 31, 
     2005, and annually thereafter, the President shall submit to 
     Congress a report on the progress of the countries of the 
     Greater Middle East and Central Asia, the Greater Middle East 
     and Central Asia Development Bank, the Greater Middle East 
     and Central Asia Development Foundation, and the Trust for 
     Democracy in developing more open political and economic 
     systems and the degree to which United States assistance has 
     been effective at promoting these changes.
       (b) Content.--The reports required by subsection (a) shall 
     include general information regarding such progress and 
     specific information on the progress of each of the Greater 
     Middle East and Central Asia Development Bank, the Greater 
     Middle East and Central Asia Development Foundation, and the 
     Trust for Democracy in--
       (1) encouraging entrepreneurial development and supporting 
     growth of small- and medium-size enterprises in the countries 
     of the Greater Middle East and Central Asia;
       (2) promoting private sector development, democratic 
     political reform, good governance building, rule of law 
     reform, and other appropriate goals in the countries of the 
     Greater Middle East and Central Asia;
       (3) fostering intra-regional trade and investment by United 
     States businesses and financial institutions in the countries 
     of the Greater Middle East and Central Asia;
       (4) developing public-private partnerships to carry out the 
     purpose of this Act; and
       (5) encouraging the involvement of the countries of the 
     Greater Middle East and Central Asia, and other donors in 
     each institution.

     SEC. 8. ENTERPRISE FUNDS REPORTS TO CONGRESS.

       Not later than 1 year after the date of enactment of this 
     Act, the President shall submit to Congress a comprehensive 
     report evaluating the appropriateness of the establishment of 
     enterprise funds for 1 or more countries of the Greater 
     Middle East and Central Asia. The report shall evaluate 
     whether and to what extent enterprise funds might be an 
     effective mechanism for promoting economic reform and 
     investment in the countries of the Greater Middle East and 
     Central Asia.

     SEC. 9. REPORT ON COORDINATION OF ASSISTANCE TO THE GREATER 
                   MIDDLE EAST AND CENTRAL ASIA.

       Not later than 1 year after the date of enactment of this 
     Act, the President shall submit to Congress a report that 
     describes the measures that have been employed, and the 
     measures that are planned to be employed, to improve the 
     coordination within the Department of State and among the 
     heads of the relevant Government agencies of the provision of 
     support to the countries of the Greater Middle East and 
     Central Asia.

     SEC. 10. NOTIFICATIONS TO CONGRESS REGARDING ASSISTANCE.

       Section 634A of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2394-1) (relating to reprogramming notifications) 
     shall apply with respect to obligations of funds made 
     available to carry out this Act.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--In addition to funds 
     otherwise available for such purpose and for the countries to 
     which this Act applies, there are authorized to be 
     appropriated to the Department of State to carry out the 
     provisions of this Act, $1,000,000,000 for each of the fiscal 
     years 2005 through 2009.
       (b) Availability of Funds.--Amounts appropriated pursuant 
     to subsection (a) shall remain available until expended.

  Mr. LIEBERMAN. Madam President, I rise today, along with my friend 
and colleague from Nebraska, Senator Hagel, to introduce the Greater 
Middle East and Central Asia Development Act of 2004. This would be a 
Marshall Plan for the Greater Middle East.
  Let me put it in the context of the news we are receiving from Iraq 
today. While public opinion surveys that have been taken by independent 
groups have shown recently that the substantial majority of the people 
of Iraq, quite understandably, are grateful that Saddam Hussein is no 
longer in power, and while a majority of them are optimistic about 
their future--a better life for themselves and their children--it is 
clear, of course, every day there is a growing group of Saddam 
loyalists left over from the previous regime, and terrorists, fanatical 
jihadists, insurgents who will attack and kill Americans and Iraqis to 
stop the forward movement of progress and freedom and prosperity in 
Iraq.
  We clearly have to respond to that with force in defense of our 
values, of liberty, of freedom for the Iraqis. We have, if you will 
allow me to use Scriptural words, to employ our swords. But it is also 
true in Iraq and throughout the world that we will only win the war on 
terrorism if we use not just our swords but plowshares as well. That is 
what this piece of legislation Senator Hagel and I are introducing 
today is all about.
  I want to speak for a few moments about it. Senator Hagel will be 
over later in the day to offer his remarks on the bill.
  Madam President, a half century ago, at the dawn of the cold war, 
Congress authorized the Marshall Plan for Europe--a bold initiative 
inspired by Secretary of State George Marshall and premised on a simple 
but transformational idea: that to stop communism, we had to rebuild 
and democratize Europe. The Marshall Plan offered monetary aid, of 
course, but it offered much more. It was a national commitment of 
American values to transform the future of Europe by offering the 
Europeans the blessings of liberty and prosperity, and thereby

[[Page S4029]]

linking, in the deepest way, Europe's future with our own. The same 
ideals and goals of the Marshall Plan can and must now be applied to 
the people of the Greater Middle East.
  The predominantly Muslim countries of the Middle East and Central 
Asia have, unfortunately, emerged at this moment in history as the 
cradle of fanatical Islamic jihadist terrorism. There is a great civil 
war being fought in the Arab world between the peace-loving, law-
abiding majority of Muslims and the minority of jihadists. This civil 
war unleashed the violent terrorist forces that led to September 11, 
2001, the attacks on America; March 11, 2004, the attacks on Spain; and 
the repeated attacks in places such as Fallujah in Iraq that are 
occurring almost every day. The outcome of our war against Islamic 
terrorists will be determined by the way in which we use our swords and 
our plowshares to determine the outcome of the civil war in the Muslim 
world.
  To stop al-Qaida and other terrorist groups from expanding this civil 
war and recruiting a new generation of killers, we must use all of our 
military power to capture and kill the enemy. We must drain the swamps 
of terrorists in Iraq and wherever they grow.
  At the same time we must combat the conditions that fuel terrorism 
and drive recruits to al-Qaida and hate and despair. To do this we must 
seed the garden, not just drain the swamp, with freedom, hope, and 
economic opportunity. If we invest in the political and economic future 
of the Middle East and Central Asia in our time, as we did in Europe 
with the Marshall plan after the end of the Second World War and at the 
beginning of the cold war, we will expand democracy's reach, choke off 
the terrorists, strengthen our own national security, and move the 
world toward greater peace.
  That is the underlying premise of the legislation Senator Hagel and I 
are introducing today. It is designed to complement our swords in the 
war against terrorism with the plowshares of political and economic 
assistance.
  Our legislation is not soft. It is not welfare. It is in fact a 
different kind of warfare on the battlefield of ideas and ideologies, 
visions for the future. Although there are compelling humanitarian 
reasons for offering assistance to the people of the Greater Middle 
East, there are also compelling American national security reasons for 
doing so. The political and economic assistance Senator Hagel and I are 
proposing might be though of as additional weapons in America's arsenal 
in the fight against terrorists.
  Let me summarize what our legislation contains. We advocate making a 
major financial investment in the future of the Middle East and Central 
Asia. How we propose making this investment is in some ways as 
significant as how much we propose investing. The key to the success of 
our Marshall plan for the Middle East, as it was of the Marshall plan 
for Europe, is it is not a detailed list of programs. It is a statement 
of values and purposes. It is the creation of a structure to carry out 
those values and purposes, and it is a commitment of American and 
international resources to realize those purposes.
  Our legislation would create three new international institutions 
that will support economic and political development in the Greater 
Middle East and Central Asia, open institutions that will require 
participation by representatives of the countries benefiting from this 
support, a partnership. Institutionalizing involvement of a wide group 
of donors and recipients will promote better cooperation and give 
ownership and accountability to the impacted nations and to the private 
reformers in those nations--key ingredients to successful foreign 
assistance.
  The first new institution Senator Hagel and I would create is a trust 
for democracy for the Middle East that would support the development of 
civil society in the region, not unlike efforts we made to help those 
who had the dream of freedom and opportunity in countries of the former 
Soviet Union, now living to experience that dream. Modeled on the 
Balkan Trust for Democracy, this institution we propose would marshal 
the support of civic leaders and reformers as well as private 
foundations to provide grants to worthy grassroots projects that 
support free association and promote civic responsibility, the building 
blocks of democracy.
  Second, Senator Hagel and I would build a multilateral development 
foundation that would provide a second track for assistance, together 
with other donors, assistance that would be additional to that already 
being provided bilaterally by the U.S. and other international donors. 
This foundation will be a public place where we and other donors can 
come together with the countries of the region to set priorities 
together, to work together for the greater good of this troubled 
region. Many countries in the Greater Middle East are richer than they 
are developed, meaning their wealth has not translated to economic 
progress for most of the people. We would invite all governments in the 
region to sit on the board of this foundation, and we would ask all to 
contribute financially and programmatically to it.

  Finally, our legislation would establish a new Middle East and 
Central Asia development bank, like the European Bank for 
Reconstruction and Development. This bank would include private sector 
participation and would underwrite large-scale infrastructure projects 
in the region. It would also have a microcredit lending facility and a 
project development facility.
  We also believe it is important and necessary to make American 
assistance more effective. That is why we are calling for the 
establishment of an office of the coordinator for Greater Middle East 
and Central Asia at our Department of State. The creation of such an 
office would help ensure all assistance provided by any government 
agency of ours is in line with the overarching goals and objectives of 
our foreign policy. It would also give other donors and countries of 
the region a simple place to go when seeking information about the 
programs we would create.
  With this collaborative structure in place, Senator Hagel and I would 
authorize $5 billion in assistance over the next 5 years. That is no 
small sum. But it is in fact small in comparison to the tens of 
billions of dollars in today's money that were spent on the Marshall 
plan in Europe 50 years ago and the hundreds of billions of dollars we 
are spending now and will continue to have to spend for the military 
side of the war against terror. That figure, we believe, is the minimum 
required to have a positive, measurable impact in the region and to 
signal the seriousness of our intentions.
  Earlier this month, civil society leaders from all over the Arab 
world gathered in Alexandria, Egypt to discuss an Arab reform agenda. 
At that meeting participants agreed on a declaration that calls for 
significant reforms that encompass the ``political, economic, social, 
and cultural aspects'' of society. The fact is the reforms those Arab 
world reformers seek are at least as far-reaching as those that are 
being suggested by others from the outside, including from the United 
States. I know there are similar reform efforts underway in Central 
Asia. They deserve our support.
  In introducing this legislation today, Senator Hagel and I hope to 
give new impetus to the discussions taking place in Washington and 
elsewhere about what we collectively can do to support political and 
economic reform in the Greater Middle East and to give the people in 
those great regions an alternative to a better life than the hatred and 
suicidal death al-Qaida offers.
  The Bush administration has put forward serious proposal along the 
same lines as ours. It certainly has the same goals. This bill Senator 
Hagel and I are introducing today is intended to build on that effort. 
We hope it helps shape the debate of the best method to implement, 
which should be one of partnership and collaboration along with a 
serious commitment of American resources.

  In June, the United States will host the G-8 summit in Sea Island, 
GA. That summit will be followed by the U.S.-EU and NATO summits also 
in June. The future of the Greater Middle East will be placed high on 
the agenda of all those important meetings.
  By introducing this legislation today, Senator Hagel and I hope to 
enable our Government to go into these summits with the bipartisan 
support of the Congress and also to provide some direction as to what 
we believe should be done and how it might best be done.

[[Page S4030]]

Senator Hagel and I hope our colleagues will take a look at this 
proposal and join us in cosponsoring it and sending thereby a message 
no less profound and no less necessary than the message of the Marshall 
plan half a century ago, that the United States is serious about 
improving the lives and expanding the freedoms of the millions of 
people who live in the Greater Middle East and Central Asia.
  Today, that is our most urgent international imperative. At the dawn 
of the cold war, America answered the challenge of communism by seeding 
a garden of peace, hope, and prosperity in Europe. Today, at the dawn 
of our current war against terrorism, it is equally essential that we 
answer the inhumane, barbaric threats of terrorism and acts of 
terrorism with all necessary force, but also by seeding the same kind 
of garden of peace, hope, and prosperity in the Greater Middle East.
                                 ______