U.S. Foreign Assistance Legislation through 2005, Vols. I-A and I-B

Transcription

1 U.S. Foreign Assistance Legislation through 2005, Vols. I-A and I-B Volume I-A Foreign Assistance Act of 1961 Part I, Ch. 1 (Policy Development Assistance Authorizations), Sec. 101 Page Nos. 19 Rationales General Policy: 1) Fundamental political economic and technological changes have resulted in an interdependence of nations. US individual liberties, economic prosperity and security best sustained and enhanced community of nations which respect individual civil and economic rights, and work together to use wisely limited natural resources in an open and equitable international system. 2) Traditional American humanitarian ideals motivate US commitment to assist in eliminating hunger, poverty, illness and ignorance. 1) alleviation of worst physical manifestations of poverty among world s poor majority; 2) promotion of conditions enabling developing countries to achieve selfsustaining economic growth with equitable distribution of benefits; 3) encouragement of development process in which individual civil and economic rights are respected and enhanced; 4) integration of developing countries into an open and equitable international economic system; and 5) promotion of good governance through combating corruption and improving transparency and accountability. Foreign Assistance Act of 1961 Part I, Ch. 1 (Policy Development Assistance Authorizations), Sec. 102 Page Nos Rationales Developing nations must depend primarily on marshalling own resources to develop and maintain institutions leading to self-sustaining growth and improvement in quality of life. But the magnitude of these efforts exceeds these countries resources, and therefore there is a long-term need for wealthy nations to contribute resources for development purposes Aid should help countries solve developmental problems in order to ensure wide and long-term participation of the poor in benefits of development; assistance should be provided in a prompt and effective manner. Priority Area/Purpose Seek to overcome the worst aspects of poverty by substantially lowering infant mortality and birth rates, increasing life expectancy, food production literacy and employment. 1) Development is primarily the responsibility of the people of developing countries themselves; US assistance shall be in support of, rather than in substitution for, self-help efforts; 2) Development planning is the responsibility of each sovereign country; 3) US should give high priority to host countries efforts to improve conditions of their poorest people; 4) Development assistance should be concentrated in countries which make

2 U.S. Foreign Assistance Legislation through 2005 Page 2 of 180 the most effective use of such assistance to help satisfy the basic human needs of their poorest people including (a) increasing agricultural productivity, (b) reducing infant mortality, (c) controlling population growth, (d) more equitable income distribution, (e) reducing unemployment, (f) increasing literacy, and (g) combating corruption and improving transparency and accountability; 5) Development assistance should focus on critical problems in those functional sectors which affect the lives of the majority of people in developing nations, including (a) food production and nutrition, (b) rural development and employment opportunities, (c) population planning and health, (d) environment and natural resources, (e) education, development administration, and human resources development, and (f) energy development and production; 6) Development assistance shall promote the participation of women in the national economies of developing nations and improvement of their status; 7) Recognize that effective energy policy is important for development in recipient countries; 8) Development assistance should be carried out to the maximum extent possible through the private sector, especially those entities which have local ties; 9) US private investment should be encouraged in social and economic development programs to which US lends support; 10) Regional cooperation in development efforts shall be encouraged; 11) US development efforts shall be coordinated to the maximum extent possible with efforts of other donor nations, including multilateral efforts; 12) Large-scale capital transfers are discouraged in US bilateral assistance; to the extent they are necessary, they should be done on a multilateral basis; 13) US should encourage policy reforms to improve economic growth in developing countries; 14) Development assistance should promote private sector economic activity and open and competitive markets as means of achieving economic growth; 15) Development assistance should recognize need of developing countries to have appropriate technology to improve agriculture, housing, water, education, employment and industry; 16) Development assistance should recognize need to develop institutional capabilities to promote long-term development, including training and human resource development; 17) Governmental reforms in developing countries which improve transparency and accountability enhance economic reforms and development. Foreign Assistance Act of 1961 Ch. 1, Sec. 103 (Agriculture, Rural Development and Nutrition Page Nos. 36 Rationales Improving food production of poorest nations is a matter of social justice, contributes to broad economic growth, and alleviates inflation in industrialized

3 U.S. Foreign Assistance Legislation through 2005 Page 3 of 180 Priority Area/Purpose countries Increase productivity and income of the rural poor Assistance shall be provided to: (a) alleviate starvation, hunger, and malnutrition, (b) expand basic services to rural poor and enhance their capacity for self help, and (c) To help create productive farm and off-farm employment in rural areas to provide a more viable economic base and enhance incomes and living standards Alleviate deforestation Improve productivity of farmers in poorest nations Improve food security in poorest nations (that food is increasingly available on a regular basis) Assist in organizing system of financial institutions to provide savings and credit to poor; stimulation of small labor-intensive businesses, improvement in marketing systems; improving rural infrastructure, including roads, water management, energy facilities; better land tenure arrangements; providing better supplies, services, research and training to farmers. Deforestation alleviation efforts should focus on community woodlots, agroforestry, reforestation, protection of watershed forests, and more effective forest management. Work with developing countries on programs to improve nutrition for mothers and children, especially nursing mothers. Enhance food security through improving food policies and management, strengthening and increasing national food reserves, and improving food distribution. Sec. 103A: Agricultural research shall take into account needs of small farmers, make extensive use of field testing and adapt research to local conditions. Focus on technology and methods which small farmers could use. Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 104 (Population and Health) Page Nos Rationales Poor health conditions and uncontrolled population growth can vitiate otherwise successful development efforts. Voluntary population programs can improve standard of living, health and nutrition; good health conditions can improve productivity and ability to participate in development process Improved health and population control in developing countries Priority Area/Purpose Voluntary population planning; primary health care for children, mothers and infants; immunization programs; oral hydration programs Authorization for various health programs targeted to developing countries, including: immunization programs; oral rehydration programs: health, nutrition, water and sanitation programs focusing on mothers and children; assistance for

4 U.S. Foreign Assistance Legislation through 2005 Page 4 of 180 orphans displaced by HIV/AIDS or other causes; programs for the prevention treatment, control of and research on HIV/AIDS; and family planning and reproductive health. Attention should be given to interrelationship between programs addressing population growth, development and improvement of standard of living, reducing infant mortality rate, and improving health of mothers and infants. Analysis of No funds for abortions as a birth control method or coerced sterilizations, nor for any biomedical research concerning same. Footnotes to this section quote extensively and appears to incorporate by reference the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 (Vol. I-A, pp ) Detailed funding appropriations and restrictions contained in s II and V of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 104A (Assistance to Combat HIV/AIDS) Page Nos Rationales Alarming spread of HIV/AIDS in countries in sub-saharan Africa, the Caribbean, and other developing countries is a major global health national security, development and humanitarian crisis. Major objective of U.S. foreign assistance to provide assistance for the prevent, treatment and control of HIV/AIDS Priority Area/Purpose Prevention, treatment and monitoring of HIV/AIDS in developing countries. Furnish assistance to address HIV/AIDS crisis in sub-saharan Africa, Caribbean and other developing countries, including working through NGO s, faith-based and community based organizations. Also should coordinate with multilateral organizations such as UNAIDS, UNICEF, WHO, UNDP, Global Fund to Fight AIDS, Tuberculosis and Malaria, and the International Bank for Reconstruction and Development. Prevention activities shall include: culturally appropriate education and counseling programs which teach avoidance of risky behavior and infection; encouraging men to be responsible sexually and as parents; voluntary testing and counseling programs, programs to prevent mother-to-child transmission; ensuring safety of the blood supply; combating intravenous drug use; and improve women s employment opportunities. Prevention efforts shall place particular emphasis on high-risk individuals, such as those in the sex trade, health care workers, and those already infected. Bulk purchases of test kits, prophylactics, and microbicides shall be utilized. Treatment activities shall include: improve capacity of indigenous health care systems to treat HIV/AIDS, including administering of appropriate pharmaceuticals; improving hospice and palliative care programs for HIV/AIDS victims and their families. Pharmaceuticals for treatment should be sustainably supplied, subject to quality control, and distributed appropriately.

5 U.S. Foreign Assistance Legislation through 2005 Page 5 of 180 Other activities include care for HIV/AIDS orphans; improving infrastructure and institutional capacity to address HIV/AIDS; and vaccine research. Analysis of Section includes monitoring and reporting requirements on the effectiveness of the prevention and treatment programs, and the sustainability and quality control of the supply of pharmaceuticals. USAID, Dept. of Health and Human Services (and other relevant agencies) This section was added by section 301 of the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 (Vol. I-A, pp ) Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 104B (Assistance to Combat Tuberculosis) Page Nos Rationales Growing international problem of tuberculosis having an adverse impact on developing countries, and is readily treatable. Major objective of US foreign assistance to control tuberculosis. Priority Area/Purpose Reduction of incidence of tuberculosis in developing countries most affected by its resurgence. s of diagnosing 70 percent of cases and curing 85 percent of identified cases by end of Furnish assistance in coordination with organizations such as WHO and Global Fund to Fight AIDS, Tuberculosis and Malaria, for DOTS and DOTS-plus treatment. Not less than 75 percent of funds should be for drugs, supplies, direct patient services and training. Invest in and work with Global Tuberculosis Drug Facility and Global Alliance for TB Drug Development. Analysis of This section was added by section 302 of the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 (Vol. I-A, pp ) Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 104 C (Assistance to Combat Malaria) Page Nos. 55 Rationales Malaria is communicable disease with second-highest death rate. Many sub- Saharan African women and children at particularly high risk, and prevention and treatment of malaria are cost-effective and readily available. Major objective of US foreign assistance to provide assistance for the prevention, control, and cure of malaria. Priority Area/Purpose Prevention, control, and cure of malaria. Furnish assistance in coordination with the WHO, Global Fund to Fight AIDS, Tuberculosis, and Malaria, Dept. of Health and Human Services (CDC and NIH) to develop comprehensive malaria control program Dept. of Health and Human Services (CDC and NIH) (and others) Analysis of This section was added by section 303 of the United States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 2003 (Vol. I-A, pp ) Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 105 (Education and Human Resources Development) Page Nos. 56

6 U.S. Foreign Assistance Legislation through 2005 Page 6 of 180 Priority Area/Purpose Reduce illiteracy, extend basic education and increase manpower training in skills related to development. Furnish assistance for education, public administration, and human resource development. Improve non-formal education methods to improve skills of urban poor and rural farmers, increase relevance of formal education systems to poor, reforming curricula and teaching methods and materials, improving training, and strengthening education institution management capabilities. Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 106 (Energy, Private Voluntary Organizations, and Selected Development Activities) Page Nos Rationales Shortages and high cost of energy severely limits development process in developing countries. Such countries lack resources and ability to exploit indigenous energy sources on their own. Priority Area/Purpose Assist developing countries to identify and develop indigenous sources of energy. Assistance provided for development of energy resources in developing countries, with focus on small-scale, decentralized renewable sources for rural areas. Activities include technical cooperation and development, economic development research, programs for reconstruction after natural or manmade disasters, infrastructure projects for poorest countries, and development of small business employment in urban areas. $207m auth. for 1986, Dept. of Energy, USAID Foreign Assistance Act of 1961 Part I, Ch.1, Sec Page Nos Sec. 107: Emphasis on use of relatively smaller, cost-saving, labor-using technologies most appropriate for poor and small businesses and farms. Sec. 109: Transfer of up to 15 percent of funds between any programs in Ch. 1 authorized, provided no program is increased more than 25 percent. Sec. 110: Recipient countries must bear at least 25 percent of cost of programs under Secs , including in-kind contributions. Sec. 111: Use of agricultural, financial, infrastructure, housing and community service cooperative encouraged Sec. 113: Encourage and promote participation of women as equal partners in development process of developing countries. $10m of additional funds authorized, but not for a separate development program for women. Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 116 (Human Rights) Page Nos Priority Area/Purpose Prohibition of foreign assistance to countries engaged in or tolerating human

7 U.S. Foreign Assistance Legislation through 2005 Page 7 of 180 rights violations. No assistance may be provided to countries engaged in consistent patter of human rights violations, including torture or cruel, inhuman or degrading treatment or punishment, prolonged detention without charges, abduction and clandestine detention, etc. No aid to governments that do not sufficiently protect children from military conscription. Exception in cases where such aid will directly benefit needy people in such countries USAID administrator may be required by Congress to so certify. Section calls for detailed country-by-country reporting on human rights violations by the Asst. Sec. of State for Democracy, Human Rights and Labor, Ambassador at Large for International Religious Freedom, and the Sec. of State. Reporting subject matter includes: extent of cooperation in investigations; US actions in response to human rights violations; instances of: violation of religious freedom, anti-semitism, coerced population control, child labor or forced labor, child military conscription, human trafficking, extrajudicial killings torture or other serious violations. Shall also report on US activities to promote adherence to human rights standards. USAID, Asst. Sec. of State for Democracy, Human Rights and Labor, Ambassador at Large for International Religious Freedom, Sec. of State Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 117 (Environment and Natural Resources) Page Nos Rationales If environmental degradation in developing countries continues, it will severely undermine best efforts to meet basic human needs, to achieve sustained economic growth and to prevent international tension and conflict. Situation requires cooperation between U.S. and developing nations. Protect the environment and natural resources in developing countries. Priority Area/Purpose Provide assistance to developing countries protect and manage their natural resources, including land, vegetation, water, and wildlife. All FAA programs shall fully consider the environmental impact of their respective projects and prepare an environmental impact statement (except where President deems it seriously detrimental to U.S. foreign policy interests) Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 118 (Tropical Forests) Page Nos Rationales Properly managed tropical forests provide a sustained flow of resources essential to economic growth of developing countries, as well as genetic resources of value to both developed and developing countries. Protect the environment and natural resources in developing countries. Priority Area/Purpose Provide assistance to developing countries for conservation and protection of their tropical forests. Consult with foreign countries concerning strategies to reduce colonization and deforestation of tropical forests.

8 U.S. Foreign Assistance Legislation through 2005 Page 8 of 180 Support stable and productive farming practices on land already cleared. Support conservation and reforestation of degraded land. Protect and rehabilitate forested watersheds. Support research for sustainable timber practices and research on understanding of tropical forests generally. Assist in establishment, expansion and management of protected tropical forest areas, in coordination with developing countries, PVO s, NGO s and other developed countries. Consider full environmental impact of USAID programs. Deny aid for: logging equipment, actions that will degrade national parks or protected areas, conversion of forest to livestock land, colonization forest lands, construction of dams on undegraded forest lands. Exception where such activity would contribute significantly and directly to improving living standards of rural poor and will be conducted in an environmentally sound manner. USAID Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 119 (Endangered Species) Page Nos Rationales Extinction of animal and plant species would be an irreparable loss with potentially serious environmental and economic consequences for both developed and developing countries. Protect the environment and natural resources in developing countries. Priority Area/Purpose Preservation of animal and plant species through regulation of hunting and trade in endangered species, limitation on pollution, and protection of habitats. Assist countries in protecting and maintaining wildlife habitats and in developing sound wildlife management and plan conservation programs. Special efforts should be made to establish and maintain wildlife sanctuaries, reserves and parks, and anti-poaching measures. Catalog plant and animal species. Contains requirements for cooperation with multilateral organizations, and US Fish and Wildlife Service, National Park Service, and Peace Corp. USAID Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 122 (General Authorities) Page Nos Authority to provide foreign assistance through loans or grants, bilaterally or though regional, multilateral, or private entities. Establishes the interagency Development Loan Committee to establish lending criteria and procedures. Development Loan Committee Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 123 (Private and Voluntary Organizations and Cooperatives in Overseas Development) Page Nos Priority Area/Purpose Encourage efforts of private and voluntary organizations in foreign assistance activities. US should support those efforts with demonstrated effectiveness.

9 U.S. Foreign Assistance Legislation through 2005 Page 9 of 180 USAID should draw on resources of private and voluntary organizations and cooperatives to plan and carry out development activities and establish simplified procedures for the development of programs conducted by private organizations with demonstrated capacity to do so. Prohibitions in Act for aid to certain countries shall not terminate those projects underway in which USAID is supporting private organizations' development efforts. Sets forth percentages of USAID budget to be allocated to supporting private development efforts. USAID Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 124 (Relatively Least Developed Countries) Page Nos Rationale Least developed countries have virtually no access to capital markets. Priority Area/Purpose Debt forgiveness by applying amounts owed to development purposes. President, on a case-by-case basis, may waive principal and interest payments owed by least developed nations to US; to the extent such amounts are applied to development purposes (including in-kind contributions to such efforts). Should work with other creditor countries. Foreign Assistance Act of 1961 Part I, Ch.1, Sec Page Nos Sec. 125: USAID should improve assessment and evaluation of effectiveness of all its programs. Sec. 126: In providing aid to countries with substantial illegal narcotics production, priority should be given to programs which discourage such production. Sec. 127: Annual review of outstanding foreign debt to determine if any country is in financial condition to make accelerated loan payments. Sec. 128: Directing use of poverty measurements of IBRD to target assistance to those countries and populations which are the poorest and in most need of help. USAID, President Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 129 (Program to Provide Technical Assistance to Foreign Governments and Foreign Central Banks of Developing or Transitional Countries) Page Nos Priority Area/Purpose Program to provide technical assistance to foreign governments and foreign central banks of developing or transitional countries. Consistent with other objectives of US foreign policy, Sec. of Treasury shall

10 U.S. Foreign Assistance Legislation through 2005 Page 10 of 180 establish program to provide expertise and technical advice to the establishment of financial laws and institutions which promote fiscal stability, efficient resource allocation, transparent and market-oriented processes and sustainable private sector growth. Subject matter include fair and effective tax systems, issuance of debt, budget planning and fiscal policy management, commercial banking sector, and financial law enforcement. Program shall emphasize anti-corruption measures. Treasury Dept. shall consult with Sec. of State and USAID to avoid duplicative efforts. Reporting requirements. Sec. of Treasury, Sec. of State, USAID Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 130 (Assistance for Victims of Torture) Page Nos. 89 Priority Area/Purpose Assistance to victims of torture. Provide assistance to victims of torture, including direct assistance, along with research and training for facilities and programs which treat torture victims. Analysis of This section was added by sec. 4(a) of the Torture Victims Relief Act of 1998 (Vol. I-B ) Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 133 (Programs to Encourage Good Governance) Page Nos Priority Area/Purpose Combat corruption and encourage good governance in developing and transitional countries, including transparency and accountability. Focus on countries which received a substantial share of foreign assistance, in which US has significant financial interest, and which have most persistent problems of private and public corruption. Look to Transparency International Annual Corruption Perceptions Index by IBRD and IMF for direction on countries to target. Activities authorized include those that: support responsible independent media; implement financial disclosure by public officials; establish auditors, inspector generals, and third-party monitoring; promote transparent and accountable legislatures and local governments; legal reforms that criminalize corruption; improve transparency and legal framework of commercial transactions; promote free and fair elections; and foster participation in legislative process. These activities may take place in countries otherwise barred from receiving foreign assistance, but in such cases may not directly aid the government. Financing of such activities authorized, including payment to NGO s. Reporting requirements. Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 134 (Assistance to Foreign Countries to Meet Minimum Standards for the Elimination of Trafficking) Page Nos

11 U.S. Foreign Assistance Legislation through 2005 Page 11 of 180 Priority Area/Purpose Combat human trafficking. Assist countries, directly or through NGO s and multilateral organizations, to meet minimum standards for elimination of human trafficking, including improving laws, investigation and prosecution of traffickers, and expansion of treatment programs and facilities for trafficking victims. Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 135 (Assistance for Orphans and Other Vulnerable Children) Page Nos Rationales Millions of children have been orphaned in sub-saharan Africa, Asia, Latin America, and the Caribbean. This crisis has negative implications for human welfare, development, and political stability that extend well beyond the region, affecting governments and people worldwide. Priority Area/Purpose Provide educational, nutritional, psychosocial, employment training and health care assistance to orphans in developing countries. Provide assistance for community-based basic care, school food programs, increasing school enrollment, employment training, promoting inheritance rights of orphans, culturally appropriate psychosocial support, and health care for orphans with HIV/AIDS. Compile data concerning orphans receiving assistance. Create system to monitor and measure effectiveness of assistance to orphans. Sec. of State shall appoint Special Advisor for Assistance to Orphans and Vulnerable Children to coordinate all such assistance through USAID, and advise various USAID bureaus concerning priorities and best practices. USAID Foreign Assistance Act of 1961 Part I, Ch.1, Sec. 135 (duplicate) (Assistance to Provide Safe Water and Sanitation) Page Nos Make access to safe water and sanitation for developing countries a specific policy objective of the United States foreign assistance programs Priority Among other items, to increase the percentage of water and sanitation assistance Area/Purpose targeted toward countries designated as high priority countries under Section 6(f) of the law countries which are in greatest need as well as those where assistance will make the greatest difference President, acting through the Secretary of State, is directed to develop a strategy; this strategy is to be developed in consultation with the Administrator of the USAID, among other appropriate federal agencies; this strategy is to be implemented by the Secretary of State acting through the Administrator of the USAID; the initial report was due within 180 days following enactment of the act and a further report is due once each year through 2015 Analysis of State Department and USAID, among others This section is identical to the Senator Paul Simon Water for the Poor Act of 2005 (Vol. I-A, )

12 U.S. Foreign Assistance Legislation through 2005 Page 12 of 180 Foreign Assistance Act of 1961 Part I, Ch.2, I Multilateral and Regional Development Programs Page Nos Rationales Problems addressed by FAA often can be more effectively addressed through cooperative efforts among nations. Priority Area/Purpose Use of multilateral and regional organizations to address development problems. Regional solutions and programs should be employed where development problems or opportunities are common among two or more countries in a region President urged to increase US contributions to multilateral lending institutions. Foreign Assistance Act of 1961 Part I, Ch.2, II American Schools and Hospitals Abroad; Prototype Desalting Plant Page Nos Outdated authorization of $35m for foreign schools, libraries and teaching hospitals founded or sponsored by US citizens. No funding since Authorization for US financial and technical participation in large-scale prototype desalting plant in Israel. Foreign Assistance Act of 1961 Part I, Ch.2, III Housing and Other Credit Guaranty Programs Page Nos Sec. 221 & 222: Housing Guarantees & Authorization Authorizing housing loan guarantees totaling $2.5b for construction of low-cost shelter in developing countries Sec. 222A: Agricultural and Productive Credit and Self-Help Community Development Programs Provision concerning private bank loans guaranteed by US. Sec. 223: General Provisions Sec. 224: Trade Credit Insurance Program for Central America USAID to guarantee liabilities of US Export-Import Bank for guarantees and insurance issued in connection with foreign assistance activities. Sec. 225: Trade Credit Insurance Program for Poland USAID to guarantee liabilities of US Export-Import Bank for guarantees and insurance issued in connection with foreign assistance activities. Sec. 226: Loan Guarantees to Israel Program Expired loan guarantee program concerning shelter for Soviet and Ethiopian Jews settling in Israel USAID, Export-Import Bank

13 U.S. Foreign Assistance Legislation through 2005 Page 13 of 180 Foreign Assistance Act of 1961 IV - Overseas Private Investment Corporation (Secs ) Page Nos Create Private Investment Corporation to increase participation of U.S. capital and skills in undeveloped countries. Priority Area/Purpose Sec. 231: Conduct financing, insurance, and reinsurance operations in developing countries. Sec. 234: Issue insurance to protect against inability to convert foreign currencies into U.S. dollars, loss of investment due to expropriation or confiscation by foreign government, loss due to war, loss due to business interruption caused by the above. Sec. 234(c): To make loans to firms; up to 25% of loans may be spent in U.S. for development or adaptation of technology used in project. Sec. 234(d): To promote, through financial support, private investment opportunities. Sec. 234A: Encourage greater availability of political risk insurance by growing the political risk insurance industry in the U.S. Sec. 240: Broaden U.S. small business participation in the development of small private enterprise in less developed countries. Sec. 235: Outstanding liability insurance and amount of financing issued under Sec. 234(a) shall not exceed $29 billion. Sec. 237: No insurance, guaranty or reinsurance of any equity investment shall extend beyond 20 years.

14 U.S. Foreign Assistance Legislation through 2005 Page 14 of 180 Foreign Assistance Act of 1961 V - Assistance to Certain Disadvantaged Children in Asia (Sec. 241) Page Nos Humanitarian aid to disadvantaged children in Asian countries. Priority Area/Purpose Provide care and welfare to disadvantaged children in Asia, particularly those fathered by U.S. citizens. $3m available toward orphanages, hostels, day care centers, school feeding programs, health, education and welfare. Foreign Assistance Act of 1961 VI - Microenterprise Development Assistance (Secs ) Page Nos Increase access to financial services and assist the development of microenterprises in developing countries. Priority Area/Purpose Sec. 251: Provide credit, savings, training, technical assistance, business development services, and other financial services to developing countries. Sec. 256: Expand availability of financial services to miscroenterprise households lacking full access to credit through loans and guarantees to microfinance institutions, provide training programs for microfinance institutions. Sec. 257: Establish a Microfinance Loan Facility to pool and manage the risk from natural disasters, war or civil conflict, national financial crisis, or short-term financial movements that threaten long-term development of U.S. supported microfinance institutions. $25m to be directly administered by the office. 50% of all microenterprise resources (credit, loans) shall be targeted to clients who are very poor. Administrator of to establish eligibility criteria. Sec. 257 Microfinance Loan Facility shall not provide loan principals over $30m with respect to any single event in any fiscal year. United States for International Development Foreign Assistance Act of 1961 IX - Utilization of Democratic Institutions in Development (Sec. 281) Page Nos Ensure maximum individual participation in economic development on the part of the people of developing countries. Priority Area/Purpose Support civic education and training in skills required for participation in governmental and political processes. Allocate funds for research designed to increase understanding of the ways development assistance can support democratic, social and political trends in recipient countries.

15 U.S. Foreign Assistance Legislation through 2005 Page 15 of 180 Foreign Assistance Act of 1961 XII - Famine Prevention and Freedom From Hunger (Sec. 296) Page Nos Ensure food security, human health, agricultural growth, trade expansion and sustainable use of natural resources. Priority Area/Purpose Mobilize U.S. universities for global research on problems affecting food, agriculture, forestry, and fisheries, improve human capacity and institutional resource development for agricultural sciences, agricultural development and trade research to support the entry of rural industries into world markets, and provide for application of agricultural sciences to solve food, health, nutrition, rural income and environmental problems. Broadly disseminate global agricultural research, provide competitive grants through universities to U.S. agriculturalists. President Foreign Assistance Act of 1961 XII - Famine Prevention and Freedom From Hunger: Board for International Food and Agricultural Development (Sec. 298) Page Nos President to create Board for International Food and Agricultural Development Foreign Assistance Act of 1961 Ch. 3 International Organizations and Programs (Sec. 302) Page Nos Section designates percent of aid to be distributed to specific organizations outdated funding authorization. Analysis of No funding authorized , Foreign Assistance Act of 1961 Ch. 6 - Central America Democracy, Peace and Development Initiative (Sec. 461) Page Nos Long-term U.S. commitment of assistance in opening political process to all members of society. Priority Area/Purpose To build democracy, improve living conditions, restore peace and application of equal justice under law in Central America. Sustain and expand a program for economic and military assistance in Central America if recipient counties can demonstrate progress toward and a commitment to these goals. Foreign Assistance Act of 1961 Famine Prevention and Freedom From Hunger: Authorization for FY 1988 and 1989 (Sec. 465) Page Nos

16 U.S. Foreign Assistance Legislation through 2005 Page 16 of 180 Outdated funding authorizations Foreign Assistance Act of 1961 Ch. 7 - Debt-For-Nature Exchanges (Sec. 461) Page Nos May cancel foreign debt in exchange for monies toward conservation or protection of the environment in that country, or earmark resources to ensure restoration, protection or sustainable use of natural resources within that country. for International Development Foreign Assistance Act of 1961 Ch. 8 - International Narcotics Control (Sec. 481) Page Nos Priority Area/Purpose Suppress international narcotics trafficking Ensure countries adopt comprehensive domestic measures against money laundering and cooperate with each other in narcotics money laundering investigations, prosecutions, etc. Outdate funding authorizations. Foreign Assistance Act of 1961 Ch. 9 - International Disaster Assistance Page Nos. 214 Alleviate human suffering caused by natural and manmade disasters. Priority Area/Purpose Provide assistance for relief and rehabilitation of people and countries affected by natural disasters. Outdated funding authorizations. Up to an additional $50m in any fiscal year may be obligated against other appropriations. Sec. 494: Emergency disaster relief for Pakistan and Nicaragua. Sec. 495: Assistance for relief and rehabilitation of refugees and needy people in Cypress. Sec. 495B: Assistance for Italian earthquake victims. Sec. 495C: Relief and rehabilitation of refugees and other needy people in Lebanon. Sec. 495D: Relief for Romanian earthquake victims. Sec. 495E: Relief for Turkish earthquake victims. Sec. 495F: Assistance for rehabilitation and resettlement of displaced persons and civil strife in Africa. Sec. 495A: Relief for Caribbean hurricane victims. Sec. 495H: Assistance to alleviate famine and disease in Cambodia. Sec. 495I: Assistance for victims of civil strife in Central America. Sec. 495J: Resettlement assistance for victims of Lebanon's civil war. Sec. 495K: Assistance for famine relief, recovery and rehabilitation in Africa. Foreign Assistance Act of 1961 Ch Development Fund For Africa: Long-Term Development Assistance For

17 U.S. Foreign Assistance Legislation through 2005 Page 17 of 180 Sub-Saharan Africa (Secs ) Page Nos Priority Area/Purpose Alleviate drought and famine in Sub-Saharan Africa by addressing Africa s longterm development needs through building capabilities of African people to implement sustainable and equitable economic growth. Authorization provided in II of Foreign Operations, Export Financing, and Related Appropriations Act of 2006 ($1.585b for Child Survival and Health Programs. $1.524b for Development Assistance). Foreign Assistance Act of 1961 Ch. 11 Support for the Economic and Democratic Development of the Independent States of the Former Soviet Union (Sec. 498) Page Nos Meet urgent humanitarian needs. Priority Area/Purpose (1) Supply necessary medicine, medical supplies, food, (2) establish democratic and free society, (3) independent media, (4) free market economy, (5) private trade and investment markets, (6) promote market based mechanisms for distribution of food, (7) strengthen and build quality health care institutions, (8) broad based education reform, etc. $410m for FY 1993 (Sec. 498C). Congress did not enact an authorization for FY 2006, however appropriations were provided in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, which provided $514m. Foreign Assistance Act of 1961 Ch. 12 Support For The Economic and Political Independence of The Countries of The South Caucasus and Central Asia (Sec. 499) Page Nos Promote economic growth, development and peace. Priority Area/Purpose Foster economic growth and development, including the conditions necessary for regional economic cooperation in the South Caucasus and Central Asia. Sec. 499B: Develop the physical infrastructure necessary for regional cooperation among the countries of the South Caucasus and Asia and encourage closer economic relations. Sec. 499C: Secure the borders and implement effective controls to prevent the trafficking of illegal narcotics and proliferation of weapons of mass destruction. Sec. 499D: Promote democratic government; create conditions for growth of pluralistic societies, including religious tolerance and respect for human rights. Foreign Assistance Act of 1961 Pat II, Ch. 1, Statement of Policy (Sec. 501) Page Nos Rationale -- Promotion of peace and security requires support based on principles of selfhelp and mutual aid. -- Hostile countries endanger world by efforts to dominate free people via

18 U.S. Foreign Assistance Legislation through 2005 Page 18 of 180 Priority Area/Purpose : military, economic pressure, and internal subversion. -- Int l military force under Org. Amer. States would aid peace. -- Priority under this part be given to countries endangered by aggression or internal subversion supported by hostile countries. -- Peace and security via U.N; armed force only for self-defense. -- NATO members cooperate politically, militarily, economically. Foster improved climate of political independence and individual liberty and to deter/defeat aggression. Authorize measures in the common defense, including military assistance to friendly countries and international organizations, against internal and external aggression. Foreign Assistance Act of 1961 Part II, Ch. 1, Utilization of Defense Articles and Services (Sec. 502) Page Nos. 251 Rationale Foreign military forces should be primarily for military, not civic, functions, and civic activities should not significantly detract from military s performance of military missions. Defense assistance to any country shall be solely for internal security or selfdefense, to participate in organizations consistent with U.N. charter, or to assist military in building public works in less-developed countries Foreign Assistance Act of 1961 Page Nos Part II, Ch. 1 Human Rights (Sec. 502B(a) (g)) Foreign policy of U.S. to promote observance of human rights by all countries. (a): No security. assistance to government with consistent pattern of gross human rights violations, absent extraordinary circumstances; Pres. conduct security. assistance programs to promote human rights, with particular consideration to whether country violates religious freedoms. (b): Secretary of State report annually to Congress on human rights practices of each country proposed to receive security assistance. (c): Secretary of State report to Congress re designated country s human rights practices and U.S. steps to promote respect for human rights there, and whether extraordinary circumstances warrant continuing security assistance despite violations. No security assistance may be delivered if report not made. (e)- (g): Funds may be made available if President determines significant improvement on human rights record so warrants and reports to Congress. State Foreign Assistance Act of 1961 Part II, Ch. 2 Military Assistance (Secs )

19 U.S. Foreign Assistance Legislation through 2005 Page 19 of 180 Page Nos Authorization of President to furnish military assistance on terms and conditions he determines to any eligible friendly country or international organization, if doing so will strengthen security of U.S. and promote world peace. These sections outline various terms and conditions of such military assistance. Analysis of No funding authorized under this chapter since Foreign Assistance Act of 1961 Ch. 3 Foreign Military Sales Page Nos Establish special account for repayments to U.S. for military assistance. Analysis of May be outdated because Fund terminates by June 30, Foreign Assistance Act of 1961 Part II, Ch. 4 Economic Support Fund (Secs ) Page Nos Rationale Analysis of Sec. 531: Under certain conditions, the U.S. national interest may require that economic support be provided to countries in amounts not otherwise justified under this Act. Promote economic or political stability. Sec. 531: Authorizes President to furnish such assistance on terms and conditions that he determines meet the policy and purposes of Part I of the Act. Secs : Outdated funding authorization for Israel and Egypt. Sec. 534: Expired assistance for Latin America and Caribbean. Secretary of State Only Sec. 531 seemingly not out-of-date. Foreign Assistance Act of 1961 Part II, Ch. 5 International Military Education and Training (Secs ) Page Nos International peace and security (Sec. 543). Priority Area/Purpose Analysis of Sec. 543: Purposes of chapter to foster beneficial relations and increased understanding between U.S. and foreign countries; improve self-reliance and human rights awareness in other countries. Secs. 541 and 544: Authorize President to furnish military education and training to foreign countries, through reciprocal personnel exchanges at military education and training facilities; Sec. 548: Defense Dept. to establish database of all participants starting in 2001 Sec. 542: Appropriations authorized for FY 1986 and FY 1987; no funding

20 U.S. Foreign Assistance Legislation through 2005 Page 20 of , 2004-present. Foreign Assistance Act of 1961 Part II, Ch. 6 Peacekeeping Operations (Secs. 551, 552, and 554) Page Nos Priority Area/Purpose National security Sec. 551: Authorizes President to furnish assistance to friendly countries for peacekeeping operations. Sec. 554: Requires President annually to submit to U.N. data regarding Defense Dept. s annual costs in support of U.N. resolutions, and to ask U.N. compile and publish such information for all members. Analysis of Sec. 551: Authorizes appropriations for FY 1986 and FY Foreign Assistance Act of 1961 Part II, Ch. 7 Airbase Construction (Secs ) Page Nos Sec. 561: Authorizes President to fund construction/provide services for construction of air bases in Israel. Analysis of Sec. 562: Funds were appropriated in Foreign Assistance Act of 1961 Part II, Ch. 8 Anti-terrorism Assistance (Secs ) Page Nos Priority Area/Purpose Sec. 572: Enhance antiterrorism skills of, and bilateral ties with, friendly countries, and increase respect for human rights. Sec. 571: Authorizes President to furnish antiterrorism assistance, on terms and conditions he determines. Secretary of State to be consulted regarding countries to receive assistance. Analysis of Sec. 574: Funds appropriated for FY 01, FY 02 and FY 03. Foreign Assistance Act of 1961 Part II, Ch. 9 Nonproliferation and Export Control Assistance (Secs ) Page Nos Priority Area/Purpose Halt proliferation of nuclear, chemical and biological weapons, and conventional weaponry Sec. 581: Achieve goal through activities designed to assist friendly countries with training and equipment to counter proliferation, strengthen bilateral ties, and promote multilateral activities toward nonproliferation.

21 U.S. Foreign Assistance Legislation through 2005 Page 21 of 180 Sec. 582: President authorized to furnish such assistance for detection, deterrence, etc. Sec. 584: Secretary of State responsible for education and training under this section. Analysis of Sec. 586: Authorizes appropriation of funds for FY 2003 Foreign Assistance Act of 1961 Part III, Ch. 1, Encouragement of Free Enterprise and Private Participation, Sec. 601 Page Nos Rationale Priority Area/Purpose (a) Vital role of free enterprise in achieving rising levels of production and standards of living; (d) USAID should encourage U.S. firms to provide engineering and professional services to capital projects under this Act; (e) More effort needed to carry out programs under Part I through competitive selection procedures. Encourage increased int l trade, private initiative, competition, use of cooperatives, credit unions, and S&L associations, etc. (b): Private investment by U.S. firms in less developed countries; (c): Establish International Private Investment Advisory Council on Foreign Aid ( IPIAC ) (b)(1)-(8): President take steps to facilitate investment and development by U.S. firms in less developed countries; (c ): Duties, other requirements of IPIAC. Foreign Assistance Act of 1961 Part III, Ch. 1, Small Business, Sec. 602 Page Nos. 306 U.S. small businesses participate under this Act. Priority Area/Purpose (b): Establish office of Small Businesses for this section. (a): President to assist small business, through information and other services, to participate under this Act. Defense Dept. Foreign Assistance Act of 1961 Part III, Ch. 1, Shipping on U.S. Vessels, Sec. 603 Page Nos. 306 Ocean transport under this Act not governed by Merchant Marine Act Foreign Assistance Act of 1961 Part III, Ch. 1, Procurement; Retention and Use of Certain Items and Funds, Secs. 604 and 605

22 U.S. Foreign Assistance Legislation through 2005 Page 22 of 180 Page Nos Sec. 604(a): President use funds under Act for procurements only in U.S., recipient country, or developing countries, absent applicable exception. Sec. 604(b)-(g): Requirements on President re funds for procurement (in agriculture, should be made in the U.S., otherwise at U.S. price-parity, etc.). Sec. 605: U.S., in lieu of foreign country, retains things procured under Act, when Pres. or Cong. finds doing so in U.S. interest. Foreign Assistance Act of 1961 Part III, Ch. 1, Patents and Technical Information, Sec. 606 Page Nos Protect intellectual property rights (a): Infringement/wrongful disclosure claims from assistance furnished under this Act may be brought only in U.S. court and within 6 years. (c): U.S. may not buy drugs from outside U.S. if U.S. patent was infringed. Foreign Assistance Act of 1961 Part III, Ch. 1, Furnishing of Services and Commodities; Advance Acquisition of Property Transfer Between Accounts, Secs. 607, 608, and 610 Page Nos Rationale Sec. 608: Excess personal property already owned by U.S. used in lieu of new procurements, where practicable, in furnishing assistance under Act. Sec. 607: When President so determines, any agency may furnish services or commodities on an advance of funds or reimbursement basis (rules apply). Sec. 608: President authorized to keep funds in a sep. acct. to pay costs from handling excess property for future assistance. Sec. 610: When necessary, with limitations, Pres. may consolidate funds from under (most) of Act s provisions funds from (most) other Act provisions. Sec. 607: State Department may transfer government-owned excess property Foreign Assistance Act of 1961 Part III, Ch. 1, Completion of Plans and Cost Estimates, Sec. 611 Page Nos (a): No assistance above $500k until (1) required technical or financial planning is complete and reasonable cost estimate made, and (2) any requisite legislative action by recipient country has been taken. (b)- (e): Other requirements (cost-benefit analysis; competitive bidding; recipient country cert. that capable of maintaining/utilizing the project). Foreign Assistance Act of 1961