[House Report 107-291]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-291

======================================================================



 
     UNITED STATES FUNDING OF MULTILATERAL DEVELOPMENT INSTITUTIONS

                                _______
                                

 November 15, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2604]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred 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 towards 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, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     6
Background and Need for Legislation..............................     6
Hearings.........................................................     7
Committee Consideration..........................................     8
Committee Votes..................................................     8
Committee Oversight Findings.....................................     9
Performance Goals and Objectives.................................     9
New Budget Authority, Entitlement Authority, and Tax Expenditures    10
Committee Cost Estimate..........................................    10
Congressional Budget Office Estimate.............................    10
Federal Mandates Statement.......................................    12
Advisory Committee Statement.....................................    12
Constitutional Authority Statement...............................    12
Applicability to Legislative Branch..............................    12
Section-by-Section Analysis of the Legislation...................    13
Changes in Existing Law Made by the Bill, as Reported............    16
Dissenting Views.................................................    21

      The amendment is as follows:
      Strike all after the enacting clause and insert the 
following:

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 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 development 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.''.

                          Purpose And Summary

    H.R. 2604 authorizes U.S. contributions of $412 million to 
the Asian Development Fund and the $30 million to the 
International Fund for Agricultural Development for the 
replenishment of these two institutions. Additionally, this 
measure directs the U.S. Executive Directors of the 
multilateral development banks to use their voice and votes to 
address issues relating to transparency, user fees, HIV/AIDS, 
projects that include dams, international terrorism, 
privatization of government-held industries, opposition to 
reducing minimum wages below internationally recognized poverty 
levels, and arsenic in drinking water in South Asia.

                  Background And Need For Legislation

    The Asian Development Fund (AsDF) is the concessional 
lending arm of the Asian Development Bank, the multilateral 
development bank for the Asia-Pacific region. The AsDF provides 
loans on highly concessional terms to those developing member 
countries (DMCs) with a low per capita gross national product 
(GNP), and limited debt repayment capacity. Therefore, funds 
are lent at concessional interest rates with repayment terms of 
24 to 38 years. Established in 1973, AsDF resources have been 
replenished six times. Authorization for the seventh 
replenishment will last until FY 2005.
    The International Fund for Agricultural Development (IFAD) 
was established as an international financial institution in 
1977 as a result of the 1974 World Food Conference. Unlike 
other regional multilateral development banks (MDBs), which 
have a broad range of objectives, the Fund has a specific 
functional mandate: to combat hunger and rural poverty in 
developing countries. There have been four replenishments of 
IFAD's resources since its founding. H.R. 2604 addresses, among 
other things, the U.S. commitment to the fifth replenishment of 
IFAD.
    In addition to authorizing the replenishments to the AsDF 
and IFAD, the bill directs the Secretary of the Treasury to use 
the influence of the United States to make improvements in the 
operation of IFAD and the regional multilateral development 
banks. These banks include: the Asian Development Bank/Fund; 
the African Development Bank/Fund; the Inter-American 
Development Bank; and the European Bank for Reconstruction and 
Development. First, the legislation directs the Secretary of 
the Treasury to instruct the U.S. Executive Directors (USEDs) 
to use their voice and vote in the various multilateral 
development banks to support efforts to fight the spread of 
HIV/AIDS. Second, the USEDs are directed to oppose user fees 
for primary education and primary healthcare. Third, the USEDs 
are encouraged to promote greater transparency regarding the 
activities of the multilateral development banks. Finally, the 
USEDs are directed to focus on poverty alleviation, economic 
growth, increased productivity, sustainable development, 
environmental protection, labor rights and an increased 
emphasis on education.
    The Committee also sought to explore the initiative 
proposed by the Bush Administration to provide grants to 
developing countries instead of loans through the multilateral 
development banks. This measure mandates a GAO study on this 
grant proposal to be delivered to the Committee within one year 
of enactment.

                                Hearings

    The Subcommittee on International Monetary Policy and Trade 
and the Committee on Financial Services held four hearings 
relating to the regional MDBs during this legislative session. 
The first hearing was held on April 25, 2001, and was entitled, 
``U.S. Policy Towards the African Development Bank and the 
African Development Fund.'' At this hearing, the Subcommittee 
heard from Dr. Donald Sherk, the former U.S. Executive Director 
to the African Development Bank; Dr. Kwesi Botchwey, Director 
of Africa Research Programs at the Harvard Center for 
International Development; and Ms. Njoki Njehu, Director of 50 
Years is Enough.
    The second Subcommittee hearing, entitled ``World Bank and 
IMF Activities in Africa: Poverty Alleviation, Debt Relief and 
HIV/AIDS,''was held on May 15, 2001. Witnesses at this hearing 
included: Dr. Susan Westin of the GAO; Dr. Nancy Birdsall, Senior 
Associate and Director, Economic Reform Project, the Carnegie Endowment 
for International Peace; Dr. James Sherry from UNAIDS; Dr. Dyna Arhin-
Tenkorang, Senior Economist at the World Health Organization's 
Commission on Macroeconomics and Health; and Dr. Leon Spencer, 
Executive Director of the Washington Office on Africa.
    On May 22, 2001, the Honorable Paul O'Neill, Secretary of 
the Treasury, testified before the full Committee on the state 
of the international financial system, IMF reform, and 
compliance with IMF agreements.
    A fourth hearing entitled ``FY 2002 Authorization Requests 
for the International Financial Institutions and Activities of 
the African Development Bank, the World Bank and the IMF in 
Africa,'' was held on June 12, 2001, and featured Mr. William 
E. Schuerch, Deputy Assistant Treasury Secretary for 
International Development, Debt and Environmental Policy.

                        Committee Consideration

    On September 21, 2001, the Subcommittee on International 
Monetary Policy and Trade met in open session and approved H.R. 
2604 for full Committee consideration, as amended, by a voice 
vote.
    On October 31, 2001, the Committee met in open session and 
ordered H.R. 2604 reported to the House with a favorable 
recommendation, with an amendment, by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Oxley to report the bill to the House with a 
favorable recommendation was agreed to by a voice vote.
    Record votes were taken on the following amendments. The 
names of Members voting for and against follow:

    An amendment by Mr. Crowley, no. 2, addressing support for 
projects that are directed at addressing arsenic contamination 
in drinking water in Bangladesh, was not agreed to by a record 
vote of 26 yeas and 26 nays (Record vote no. 11).
        YEAS                          NAYS
Mr. LaFalce                         Mr. Oxley
Mr. Frank                           Mr. Leach
Mr. Kanjorski                       Mr. Bereuter
Ms. Waters                          Mr. Baker
Mr. Sanders                         Mr. Castle
Mrs. Maloney of New York            Mr. Royce
Mr. Gutierrez                       Mr. Lucas of Oklahoma
Mr. Watt of North Carolina          Mr. Paul
Mr. Ackerman                        Mr. Gillmor
Mr. Bentsen                         Mr. Weldon of Florida
Mr. Maloney of Connecticut          Mr. Ryun of Kansas
Ms. Hooley of Oregon                Mr. LaTourette
Mr. Sandlin                         Mr. Manzullo
Mr. Meeks of New York               Mr. Ose
Ms. Lee                             Mrs. Biggert
Mr. Inslee                          Mr. Green of Wisconsin
Ms. Schakowsky                      Mr. Toomey
Mr. Moore                           Mr. Shays
Mr. Gonzalez                        Mr. Fossella
Mr. Capuano                         Mr. Gary G. Miller of
Mr. Ford                              California
Mr. Lucas of Kentucky               Mr. Cantor
Mr. Crowley                         Mr. Grucci
Mr. Clay                            Ms. Hart
Mr. Israel                          Mrs. Capito
Mr. Ross                            Mr. Rogers of Michigan
                                    Mr. Tiberi

    An amendment by Ms. Schakowsky, no. 3, directing United 
States opposition to assistance for projects that would 
increase the cost of clean drinking water for low-income 
residential consumers, was not agreed to by a record vote of 16 
yeas and 19 nays (Record vote no. 12).
        YEAS                          NAYS
Mr. LaFalce                         Mr. Oxley
Mr. Frank                           Mr. Bereuter
Mr. Kanjorski                       Mr. Baker
Ms. Waters                          Mr. Royce
Mr. Sanders                         Mr. Lucas of Oklahoma
Mrs. Maloney of New York            Mr. Barr of Georgia
Mr. Gutierrez                       Mr. Paul
Mr. Watt of North Carolina          Mr. Ryun of Kansas
Mr. Maloney of Connecticut          Mr. Manzullo
Ms. Hooley of Oregon                Mr. Ose
Ms. Lee                             Mrs. Biggert
Mr. Inslee                          Mr. Green of Wisconsin
Ms. Schakowsky                      Mr. Toomey
Mr. Moore                           Mr. Shays
Mr. Lucas of Kentucky               Mr. Shadegg
Mr. Crowley                         Mr. Fossella
                                    Mr. Grucci
                                    Ms. Hart
                                    Mr. Rogers of Michigan

    The Committee also considered the following amendments:

          An amendment by Mr. Oxley, no. 1, making various 
        changes to the bill, was agreed to by a voice vote.
          An amendment by Mr. Gutierrez, no. 4, directing 
        United States opposition to suggestions that the 
        minimum wage be reduced below the internationally 
        recognized level of poverty, was agreed to by a voice 
        vote.
          An amendment by Mr. Crowley, no. 5, addressing 
        support for projects that are directed at addressing 
        arsenic contamination in drinking water in South Asia, 
        was agreed to by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    Performance Goals And Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    This legislation seeks to promote development and poverty 
alleviation by authorizing the U.S. contributions to the Asian 
Development Fund and the International Fund for Agriculture and 
Development. This measure also seeks to reduce HIV/AIDS, 
promote transparency and oppose user fees within the 
multilateral development banks.

   New Budget Authority, Entitlement Authority, And Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that this 
legislation would result in no new budget authority, 
entitlement authority, or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 9, 2001.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2604, a bill 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 Agriculture Development, and to 
set forth additional policies of the United States towards the 
African Development Bank, the African Development Fund, and 
Asian Development Bank, the Inter-American Development Bank, 
and the European Development Bank.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Joseph C. 
Whitehill.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 2604--A bill to authority 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 towards the African Development Bank, the African 
        Development Fund, and Asian Development Bank, the International 
        American Development Bank, and the European Development Bank

    Summary: H.R. 2604 would authorize the appropriations of 
funds for the United States' contribution to the Asian 
Development Fund (ADF) and the International Fund for 
Agricultural Development (IFAD). The bill also would authorize 
the appropriation of $10 million in 2002 for grants to the 
multilateral development banks for the cost of increasing the 
transparency of their operations. Finally, the bill would 
direct the Secretary of the Treasury to instruct the U.S. 
Executive Directors of the multilateral development banks to 
work toward certain policy objectives.
    Assuming the appropriation of the authorized amounts, CBO 
estimates that implementing H.R. 2604 would cost $25 million in 
2002 and $276 million over the 2002-2006 period. Because H.R. 
2604 would not affect direct spending or receipts, pay-as-you-
go procedures would not apply.
    H.R. 2604 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2604 is shown in the following table. 
The estimate assumes that the authorized amounts will be 
appropriated over the next four years and that outlays will 
follow historical spending patterns. The costs of this 
legislation fall within budget function 150 (international 
affairs).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2001     2002     2003     2004     2005     2006
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority \1\..................................       77        0        0        0        0        0
    Estimated Outlays.....................................      167      142      117       88       58       12
Proposed Changes:
    Estimated Authorization Level.........................        0      128      118      103      103        0
    Estimated Outlays.....................................        0       25       46       60       70       75
Spending Under H.R. 2604:
    Estimated Authorization Level \1\.....................       77      128      118      103      103        0
    Estimated Outlays.....................................      167      167      163      148      128       87
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year for ADF and IFAD.

    Basis of estimate: Sections 1 and 2 of H.R. 2604 would 
authorize the appropriation of $412 million for the seventh 
replenishment of the ADF and $30 million for the fifth 
replenishment of the IFAD, respectively. International 
agreements to replenish the resources of multilateral 
development banks (MDBs) typically cover a number of years. For 
the purpose of this estimate, CBO assumes the appropriation of 
the authorized amounts would follow the schedule of 
contributions agreed upon by the United States and other 
donors.
    According to Administration documents, the replenishment 
agreement for the ADF would cover four years and the 
replenishment agreement for IFAD would cover two years. CBO 
assumes the authorized amount for the ADF would be provided in 
four installments of $103 million a year over the 2002-2005 
period. Similarly, CBO assumes the $30 million authorization 
for the IFAD would be provided in two installments of $15 
million a year in 2002 and 2003. Assuming the appropriation of 
the authorized amounts, CBO estimates that implementing these 
provisions would cost $21 million in 2002 and $266 million over 
the 2002-2006 period.
    Section 5 would authorize the appropriation of $10 million 
in 2002 for the Secretary of the Treasury to make grants to the 
various MDBs to improve the transparency of their operations. 
CBO estimates spending of the authorized amount would follow 
the pattern of the Treasury Department's technical assistance 
program and cost $10 million over the 2002-2006 period.
    The remaining sections of the bill would direct the 
Secretary of the Treasury to instruct the U.S. Executive 
Directors of the MDBs to work toward certain policy objectives. 
CBO estimates that implementing these provisions would not 
affect spending.
    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: H.R. 2604 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Joseph C. Whitehill. 
Impact on State, Local, and Tribal Governments: Elyse Goldman. 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. United States contribution to the seventh replenishment of 
        the resources of the Asian Development Fund

    This section amends the Asian Development Bank Act by 
authorizing the United States to contribute $412 million to the 
Asian Development Fund to meet the U.S. obligation to the 4-
year, seventh replenishment of the Fund.

Section 2. United States contribution to the fifth replenishment of the 
        resources of the International Fund for Agricultural 
        Development

    This section authorizes the United States to contribute $30 
million to the International Fund for Agricultural Development 
(IFAD) to meet the U.S. commitment to the 2-year, fifth 
replenishment of IFAD. It also requires, within 3 months after 
the date of enactment, that the Secretary of the Treasury 
submit to Congress a report on the participation of IFAD in the 
enhanced Highly Indebted Poor Country Initiative.

Section 3. HIV/AIDS strategic plan

    This section amends title XVI of the International 
Financial Institutions Act by requiring the Secretary of the 
Treasury to instruct the respective U.S. Executive Director or 
U.S. Governor, as appropriate, to support continued efforts to 
fight the spread of HIV/AIDS, tuberculosis, malaria, and other 
infectious diseases by the Asian Development Bank/Fund, the 
African Development Bank/Fund, the International Fund for 
Agricultural Development, and the Inter-American Development 
Bank. These efforts include the development of a strategic 
plan, the integration of disease related activities in existing 
projects, implementation of HIV/AIDS and other disease impact 
criteria in evaluating new projects, and support training for 
professional staff on HIV/AIDS.

Section 4. User fees

    This section amends title XVI of the International 
Financial Institutions Act by requiring the Secretary of the 
Treasury to instruct the U.S. Executive Director or U.S. 
Governor, as appropriate, at the Asian Development Bank/Fund, 
the African Development Bank/Fund, the International Fund for 
Agricultural Development, and the Inter-American Development 
Bank 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 healthcare, 
including prevention and treatment efforts for HIV/AIDS, 
malaria, tuberculosis, and infant, child, and maternal well-
being.

Section 5. Transparency

    This section amends title XV of the International Financial 
Institutions Act by requiring the Secretary of Treasury to 
instruct the U.S. Executive Director or U.S. Governor, as 
appropriate, to the Asian Development Bank/Fund, the African 
Development Bank/Fund, the International Fund for Agricultural 
Development, the Inter-American Development Bank, and the 
European Bank for Reconstruction and Development to continue to 
make efforts towards transparency in these institutions. These 
efforts include working towards ensuring the following: (1) 
meetings of the boards of directors or the board of governors, 
as appropriate, are open to the public with the exception of 
the discussion of sensitive matters, such as individual 
personnel matters; (2) the transcripts of such meetings are 
available to the public no laterthan 60 calendar days after the 
meetings, with the exception of the discussion of sensitive matters, 
such as individual personnel matters; (3) and all key documents that 
are presented for the endorsement or approval by the boards of 
directors or board of governors, as appropriate, will be made available 
to the public at least 15 days before consideration by the board.
    This section also requires the relevant U.S. Executive 
Director or U.S. Governor, as appropriate, to inform their 
respective institutions regarding the transparency goals listed 
in this legislation in a manner that the Secretary of the 
Treasury deems appropriate. In addition, the U.S. Executive 
Director or U.S. Governor will be required to testify annually 
at the request of the House Financial Services Committee and 
the Senate Foreign Relations Committee Chairpersons on 
transparency and other issues. This section also creates a new 
FY2002 authorization of $10 million for a transparency grant or 
grants to be awarded by Treasury to relevant international 
institutions that meet the transparency goals of this section 
and commit to using the grant for future transparency 
activities. Under this section, the Secretary of the Treasury 
must also submit to the House Financial Services Committee and 
the Senate Foreign Relations Committee a written report 
detailing the steps that have been taken towards the 
transparency goals of this section on an annual basis. Finally, 
this section requires Congress to pursue transparency goals at 
all official interparliamentary dialogues and meetings as 
appropriate.

Section 6. General objectives

    This section amends title XVI of the International 
Financial Institutions Act by requiring the Secretary of the 
Treasury to instruct the U.S. Executive Director or U.S. 
Governor, as appropriate, at the Asian Development Bank/Fund, 
African Development Bank/ Fund, the Inter-American Development 
Bank, and the International Fund for Agricultural Development 
to focus on poverty alleviation, economic growth, increased 
productivity, sustainable development, environmental 
protection, labor rights, and an increased emphasis on 
education.

Section 7. Requirements for financial support for dams

    This section amends title XVI of the International 
Financial Institutions Act by requiring the Secretary of the 
Treasury to instruct the U.S. Executive Director or U.S. 
Governor, as appropriate, at the Asian Development Bank/Fund, 
African Development Bank/Fund, the Inter-American Development 
Bank, and 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 the enumerated 
criteria.

Section 8. Study by the General Accounting Office

    This section requires, within one year after the date of 
this bill, GAO to submit to the House Financial Services 
Committee and the Senate Foreign Relations Committee a report 
on the benefits and costs of the African Development Fund, the 
Asian Development Fund, the International Fund for Agricultural 
Development, and the Fund for Special Operations of the Inter-
American Development Bank, providing grants instead of loans.

Section 9. Commendation

    This section finds that the African Development Bank and 
Fund President Omar Kabbaj should be commended for his 
successful reform efforts and encourages his continued efforts 
at reform.

Section 10. Action by the President

    This section amends title XVI of the International 
Financial Institutions Act by providing that 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 deter, or prevent acts of 
international terrorism, the Secretary of the Treasury may, 
consistent with other applicable law, instruct the United 
States Executive Director or the United States Governor, as 
appropriate, of the multilateral banks to take this 
determination into account in considering whether to approve an 
application of the country for assistance from the institution.

Section 11. Sense of the Congress regarding privatization projects

    This section amends title XVI of the International 
Financial Institutions Act by making it a sense of Congress 
that the Secretary of the Treasury should instruct the U.S. 
Executive Director or U.S. Governor, as appropriate, at the 
Asian Development Bank/Fund, the African Development Bank/Fund, 
the International Fund for Agricultural Development, the Inter-
American Development Bank, and the European Bank for 
Reconstruction and Development to use the voice and vote of the 
United States to oppose the provision by a respective 
institution of assistance for a project that involves 
privatization of a government industry if certain enumerated 
criteria are not met.

Section 12. Opposition of United States to reduction of minimum wage 
        below internationally recognized level of poverty

    This section amends title XVI of the International 
Financial Institutions Act by requiring the Secretary of the 
Treasury to instruct the U.S. Executive Director at the African 
Development Bank/Fund, the Asian Development Bank/Fund, the 
Inter-American Development Bank, and the European Bank for 
Reconstruction and Development, and the U.S. 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 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 per day.

Section 13. Support for projects that are directed at addressing 
        arsenic contamination in drinking water in South Asia

    This section amends title XVI of the International 
Financial Institutions Act by requiring the Secretary of the 
Treasury to instruct the U.S. Executive Director at the Asian 
Development Fund to use the voice and vote of the United States 
to support projects that are directed at arsenic contamination 
in drinking water in South Asia. In a Colloquy between the 
Members it was agreed that this amendment encouraged the USEDs 
to use the country standard to measure arsenic levels as 
opposed to the World Health Organization standard.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

              SECTION 31 OF THE ASIAN DEVELOPMENT BANK ACT


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.
                              ----------                              


               INTERNATIONAL FINANCIAL INSTITUTIONS ACT

           *       *       *       *       *       *       *


                       TITLE XV--OTHER POLICIES

           *       *       *       *       *       *       *


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.

                       TITLE XVI--HUMAN WELFARE

           *       *       *       *       *       *       *


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. 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. 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. 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. 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. 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. 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. 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.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    Congress can do a great service to the American taxpayer, 
as well as citizens in developing countries, by rejecting HR 
2604, which reauthorizes two multilateral development banks, 
the International Fund for Agricultural Development (IFAD) and 
the Asian Development Fund (AsDF).
    Congress has no constitutional authority to take money from 
American taxpayers and send that money overseas for any reason. 
Furthermore, such foreign aid undermines the recipient 
countries long-term economic progress by breeding a culture of 
dependency. Ironically, foreign aid also undermines long-term 
United States foreign policy goals by breeding resentment among 
recipients of the aid which may manifest itself in a foreign 
policy hostile to the United States.
    If Congress lacks authority to fund an international food 
aid program, then Congress certainly lacks authority to use 
taxpayer funds to promote economic development in foreign 
lands. Programs such as the AsDF are not only unconstitutional, 
but, by removing resources from the control of consumers and 
placing them under the control of bureaucrats and politically 
powerful special interests, these programs actually retard 
economic development in the countries receiving this ``aid!'' 
This is because funds received from programs like the AsDFD are 
all-to-often wasted on political boondoggles which benefit the 
political elites in the recipient countries, but are of little 
benefit to the individual citizens of those countries.
    In conclusion, HR 604 authorizes the continued taking of 
taxpayer funds for unconstitutional and economically 
destructive programs. I therefore urge my colleagues to reject 
this bill, return the money to the American taxpayers, and show 
the world that the United States Congress is embracing the 
greatest means of generating prosperity: the free market.
                                                          Ron Paul.

                                  
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