99–006

107TH CONGRESS REPT. 107–312 " ! HOUSE OF REPRESENTATIVES 1st Session Part 1

ZIMBABWE DEMOCRACY AND ECONOMIC RECOVERY ACT

OF 2001

DECEMBER 4, 2001.—Ordered to be printed

Mr. HYDE, from the Committee on International Relations,

submitted the following

R E P O R T

[To accompany S. 494]

[Including cost estimate of the Congressional Budget Office]

The Committee on International Relations, to whom was referred the bill (S. 494) to provide for a transition to democracy and

to promote economic recovery in Zimbabwe, having considered the

same, reports favorably thereon with an amendment and recommends that the bill as amended do pass.

TABLE OF CONTENTS

Page

The Amendment ...................................................................................................... 2

Purpose and Summary ............................................................................................ 4

Background and Need for the Legislation ............................................................. 4

Hearings ................................................................................................................... 6

Committee Consideration ........................................................................................ 7

Votes of the Committee ........................................................................................... 7

Committee Oversight Findings ............................................................................... 7

New Budget Authority and Tax Expenditures ...................................................... 7

Congressional Budget Office Cost Estimate .......................................................... 7

Performance Goals and Objectives ......................................................................... 9

Constitutional Authority Statement ...................................................................... 9

Section-by-Section Analysis .................................................................................... 9

New Advisory Committees ...................................................................................... 10

Congressional Accountability Act ........................................................................... 10

Federal Mandates .................................................................................................... 10

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THE AMENDMENT

The amendment is as follows:

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Zimbabwe Democracy and Economic Recovery Act

of 2001’’.

SEC. 2. STATEMENT OF POLICY.

It is the policy of the United States to support the people of Zimbabwe in their

struggle to effect peaceful, democratic change, achieve broad-based and equitable

economic growth, and restore the rule of law.

SEC. 3. DEFINITIONS.

In this Act:

(1) INTERNATIONAL FINANCIAL INSTITUTIONS.—The term ‘‘international financial institutions’’ means the multilateral development banks and the International Monetary Fund.

(2) MULTILATERAL DEVELOPMENT BANKS.—The term ‘‘multilateral development banks’’ means the International Bank for Reconstruction and Development, the International Development Association, the International Finance

Corporation, the Inter-American Development Bank, the Asian Development

Bank, the Inter-American Investment Corporation, the African Development

Bank, the African Development Fund, the European Bank for Reconstruction

and Development, and the Multilateral Investment Guaranty Agency.

SEC. 4. SUPPORT FOR DEMOCRATIC TRANSITION AND ECONOMIC RECOVERY.

(a) FINDINGS.—Congress makes the following findings:

(1) Through economic mismanagement, undemocratic practices, and the

costly deployment of troops to the Democratic Republic of the Congo, the Government of Zimbabwe has rendered itself ineligible to participate in International Bank for Reconstruction and Development and International Monetary

Fund programs, which would otherwise be providing substantial resources to

assist in the recovery and modernization of Zimbabwe’s economy. The people of

Zimbabwe have thus been denied the economic and democratic benefits envisioned by the donors to such programs, including the United States.

(2) In September 1999 the IMF suspended its support under a ‘‘Stand By

Arrangement’’, approved the previous month, for economic adjustment and reform in Zimbabwe.

(3) In October 1999, the International Development Association (in this section referred to as the ‘‘IDA’’) suspended all structural adjustment loans, credits, and guarantees to the Government of Zimbabwe.

(4) In May 2000, the IDA suspended all other new lending to the Government of Zimbabwe.

(5) In September 2000, the IDA suspended disbursement of funds for ongoing projects under previously-approved loans, credits, and guarantees to the

Government of Zimbabwe.

(b) SUPPORT FOR DEMOCRATIC TRANSITION AND ECONOMIC RECOVERY.— (1) BILATERAL DEBT RELIEF.—Upon receipt by the appropriate congressional

committees of a certification described in subsection (d), the Secretary of the

Treasury shall undertake a review of the feasibility of restructuring, rescheduling, or eliminating the sovereign debt of Zimbabwe held by any agency of the

United States Government.

(2) MULTILATERAL DEBT RELIEF AND OTHER FINANCIAL ASSISTANCE.—It is

the sense of Congress that, upon receipt by the appropriate congressional committees of a certification described in subsection (d), the Secretary of the Treasury should—(A) direct the United States executive director of each multilateral development bank to propose that the bank should undertake a review of the

feasibility of restructuring, rescheduling, or eliminating the sovereign debt

of Zimbabwe held by that bank; and

(B) direct the United States executive director of each international financial institution to which the United States is a member to propose to

undertake financial and technical support for Zimbabwe, especially support

that is intended to promote Zimbabwe’s economic recovery and development, the stabilization of the Zimbabwean dollar, and the viability of

Zimbabwe’s democratic institutions.

(c) MULTILATERAL FINANCING RESTRICTION.—Until the President makes the certification described in subsection (d), and except as may be required to meet basic

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human needs or for good governance, the Secretary of the Treasury shall instruct

the United States executive director to each international financial institution to oppose and vote against— (1) any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or

(2) any cancellation or reduction of indebtedness owed by the Government

of Zimbabwe to the United States or any international financial institution.

(d) PRESIDENTIAL CERTIFICATION THAT CERTAIN CONDITIONS ARE SATISFIED.— A certification under this subsection is a certification transmitted to the appropriate

congressional committees of a determination made by the President that the following conditions are satisfied:

(1) RESTORATION OF THE RULE OF LAW.—The rule of law has been restored

in Zimbabwe, including respect for ownership and title to property, freedom of

speech and association, and an end to the lawlessness, violence, and intimidation sponsored, condoned, or tolerated by the Government of Zimbabwe, the ruling party, and their supporters or entities.

(2) ELECTION OR PRE-ELECTION CONDITIONS.—Either of the following two

conditions is satisfied:

(A) PRESIDENTIAL ELECTION.—Zimbabwe has held a presidential election that is widely accepted as free and fair by independent international

monitors, and the president-elect is free to assume the duties of the office.

(B) PRE-ELECTION CONDITIONS.—In the event the certification is made

before the presidential election takes place, the Government of Zimbabwe

has sufficiently improved the pre-election environment to a degree consistent with accepted international standards for security and freedom of

movement and association.

(3) COMMITMENT TO EQUITABLE, LEGAL, AND TRANSPARENT LAND REFORM.—

The Government of Zimbabwe has demonstrated a commitment to an equitable,

legal, and transparent land reform program consistent with agreements reached

at the International Donors’ Conference on Land Reform and Resettlement in

Zimbabwe held in Harare, Zimbabwe, in September 1998.

(4) FULFILLMENT OF AGREEMENT ENDING WAR IN DEMOCRATIC REPUBLIC OF

CONGO.—The Government of Zimbabwe is making a good faith effort to fulfill

the terms of the Lusaka, Zambia, agreement on ending the war in the Democratic Republic of Congo.

(5) MILITARY AND NATIONAL POLICE SUBORDINATE TO CIVILIAN GOVERN- MENT.—The Zimbabwean Armed Forces, the National Police of Zimbabwe, and

other state security forces are responsible to and serve the elected civilian government.

(e) WAIVER.—The President may waive the provisions of subsection (b)(1) or

subsection (c), if the President determines that it is in the national interest of the

United States to do so.

SEC. 5. SUPPORT FOR DEMOCRATIC INSTITUTIONS, THE FREE PRESS AND INDEPENDENT

MEDIA, AND THE RULE OF LAW.

(a) IN GENERAL.—The President is authorized to provide assistance under part

I and chapter 4 of part II of the Foreign Assistance Act of 1961 to—

(1) support an independent and free press and electronic media in

Zimbabwe;

(2) support equitable, legal, and transparent mechanisms of land reform in

Zimbabwe, including the payment of costs related to the acquisition of land and

the resettlement of individuals, consistent with the International Donors’ Conference on Land Reform and Resettlement in Zimbabwe held in Harare,

Zimbabwe, in September 1998, or any subsequent agreement relating thereto;

and

(3) provide for democracy and governance programs in Zimbabwe.

(b) FUNDING.—Of the funds authorized to be appropriated to carry out part I

and chapter 4 of part II of the Foreign Assistance Act of 1961 for fiscal year 2002—

(1) $20,000,000 is authorized to be available to provide the assistance described in subsection (a)(2); and

(2) $6,000,000 is authorized to be available to provide the assistance described in subsection (a)(3).

(c) SUPERSEDES OTHER LAWS.—The authority in this section supersedes any

other provision of law.

SEC. 6. SENSE OF CONGRESS ON THE ACTIONS TO BE TAKEN AGAINST INDIVIDUALS RESPONSIBLE FOR VIOLENCE AND THE BREAKDOWN OF THE RULE OF LAW IN ZIMBABWE.

It is the sense of Congress that the President should begin immediate consultation with the governments of European Union member states, Canada, and other

appropriate foreign countries on ways in which to—

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(1) identify and share information regarding individuals responsible for the

deliberate breakdown of the rule of law, politically motivated violence, and intimidation in Zimbabwe;

(2) identify assets of those individuals held outside Zimbabwe;

(3) implement travel and economic sanctions against those individuals and

their associates and families; and

(4) provide for the eventual removal or amendment of those sanctions.

PURPOSE AND SUMMARY

The bill states that it is U.S. policy to support the Zimbabwean

people in their current struggles to effect peaceful, democratic

change, achieve broad-based and equitable economic growth, and

restore the rule of law. It supports democratic transition and economic recovery through provisions of debt relief upon Presidential

certification that the following conditions have been fulfilled: support for democratic institutions, free press and independent media,

and the rule of law. It authorizes funding for equitable land reform

and assistance for democracy and governance. The bill also contains a sense of Congress that the President should consult with

the Europan Union, Canada, and other appropriate foreign governments to take action against individuals responsible for politically

motivated violence and the breakdown of the rule of law in

Zimbabwe.

BACKGROUND AND NEED FOR THE LEGISLATION

After winning majority rule in 1980, Zimbabwe (formerly Rhodesia) showed strong potential of becoming a model of African development. It expanded a robust agricultural economy and it enjoyed a well-respected parliament and independent judiciary. The

government of President Robert Mugabe extended social services to

the previously disenfranchised majority, helping to give the country

one of Africa’s most highly educated populations. Zimbabwe was a

source of stability in a largely troubled southern Africa region.

Unfortunately, today’s Zimbabwe is a very different country. For

several years now, its government has become increasingly autocratic, systematically repressing peaceful political opposition. It has

sanctioned wide scale human rights violations, which have been

condemned by the United States, as well as the European Union

and various human rights organizations. The Zimbabwe Lawyers

for Human Rights group has observed that it is, ‘‘outraged by the

continued brutality, lack of respect for fundamental human rights

and political partisanship of the Zimbabawe Republic Police.’’ For

Zimbabweans, it is a sad irony that the Mugabe government represses political opponents with the same Law and Order Maintenance Act which Ian Smith’s repressive Rhodesian government pioneered to prevent majority rule. The Committee shares the concern

of many observers that Zimbabwe stands on the brink of a violent

political implosion.

Zimbabwe also has been in deep economic decline. Because of

overall economic mismanagement and a government-driven invasion of farmland, a once productive nation now faces accelerating

poverty and widespread starvation. Foreign investment has plummeted due to a lack of investor confidence in the government’s commitment to preserving the rule of law. Because of the government’s

economic policies, Zimbabwe is among the minority of African countries ineligible for the African Growth and Opportunity Act

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(AGOA), signed into law in 2000. The Committee endorses this Administration designation of ineligibility.

The Committee has closely monitored events in Zimbabwe. In the

second session of the 106th Congress, the Subcommittee on Africa

held a hearing titled, ‘‘Zimbabwe: Democracy on the Line.’’ At that

hearing, Members heard of government-sponsored human rights

abuses. The Subcommittee Chairman was scheduled to lead an

International Republican Institute election monitoring team to the

2000 parliamentary election (widely judged not to be ‘‘free and

fair’’) until the government denied visas. Throughout the current

Congress, Committee staff briefings have been held with Administration officials, Zimbabwe government officials, Zimbabwe opposition officials, and human rights organizations to better understand

developments in this important southern African country. The

Committee intends to continue this close monitoring.

According to the Zimbabwean Constitution, presidential elections

must be held by the end of March 2002. After losing ground at the

polls in a parliamentary byelection, President Mugabe’s government has acted increasingly violent, suppressing the independent

press and political opposition. His government has rejected international efforts to address land reform in Zimbabwe, the most recent being the British-led Abuja Agreement made in September.

The Mugabe government has breached this accord, which should

have ended all land takeovers, by subsequently sanctioning farm

invasions and the blatant disregard for the rule of law. Adding to

the suffering of the Zimbabwean people is the rapid spread of HIV/

AIDS. Zimbabwe is one of Africa’s most heavily impacted countries.

The Committee strongly supports U.S. HIV/AIDS programming in

Zimbabwe.

The regional implications of Zimbabwe’s looming humanitarian

disaster are grave. Neighboring nations could lose stability due to

a mass exodus of Zimbabweans, which is possible with a continued

economic and political deterioration. South Africa in particular

faces this specter.

The Zimbabwe Democracy and Economic Recovery Act of 2001 is

a recognition that the U.S. has a significant interest in seeing that

Zimbabwe reverse its decline and begin to reach its considerable

potential. It establishes a policy framework of invectives for the

government of Zimbabwe to proceed with free and fair elections, respect the rule of law (including as it relates land reform) and take

other policy actions. If the government of Zimbabwe moves in this

direction, the legislation encourages the U.S. Treasury Department

to work through the international financial institutions in order to

provide debt relief and other economic development aid to

Zimbabwe. But absent a Zimbabwe government commitment to democracy and the rule of law, the legislation prohibits the U.S. from

supporting any such assistance, which is the international financial

institution’s current position.

S. 494 also authorizes U.S. bilateral aid for land reform and governance programs. The Committee believes, however, that land reform aid under current conditions would be counterproductive. The

Committee strongly supports democracy and governance programs

and programs supporting an independent press in Zimbabwe,

whose funding is authorized by this legislation. The Committee

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notes that the Mugabe government enjoys a virtual monopoly on

radio broadcasts, which should be broken.

President Mugabe is doing all he can to see that the world is not

watching his government’s actions. Washington Post and New York

Times reporters have been denied visas. Foreign journalists are

routinely harassed and intimidated. Zimbabwean journalists,

though, have born the brunt of government attack. Newspaper offices have been bombed, with likely government complicity. Against

this, the Committee notes profiles in courage. For example, Geoff

Nyarota, editor of the Daily News, recently won the New Yorkbased Committee to Protect Journalists Press Freedom Award for

his courageous work uncovering government corruption. There is

reason to believe that passage of this legislation would provide a

considerable morale boost to those Zimbabweans resisting government persecution.

Given the fact that there are years of credible reporting of

Zimbabwe government corruption, this legislation encourages the

Administration to begin the process of imposing personal sanctions

(travel ban and asset freeze) on those individuals responsible for

the breakdown of the rule of law in Zimbabwe. This should include

consultation with others nations and international organizations.

The European Union has already taken steps to impose such

‘‘smart sanctions.’’ The Committee believes that this diplomatic tool

could be of considerable impact in promoting democracy and the

rule of law in Zimbabwe. Zimbabweans value frequent travels

abroad and the ability to send their children to school overseas.

In the run up to presidential elections, Zimbabwe is suffering increasing political violence. The political opposition deserves great

credit for remaining peaceful in the face of government violence.

For years now, its members have been beaten, tortured, and killed.

Their discipline will be further tested in the coming months as the

Mugabe regime provokes unrest, possibly to invoke a state of emergency to legitimize its canceling elections. Ominously, President

Mugabe has begun referring to the political opposition as ‘‘terrorists.’’ The Committee hopes that the political opposition remains

steadfastly committed to non-violence. It also encourages the Administration to prepare a policy and security response should a

state of emergency be declared.

The Committee notes that the current crisis in Zimbabwe is in

many ways more solvable than other crisis in Africa. More so than

other African countries, Zimbabwe has the building blocks of a

healthy democracy and economy. The Zimbabwean people are educated and skilled. There is a vibrant and peaceful opposition. The

possibility of AGOA adds to Zimbabwe’s considerable economic potential. The Committee expresses its desire to support Zimbabweans who are struggling against tyranny so that their country can

begin to reach its potential. S. 494 helps lay a foundation for the

U.S. to contribute to that future.

HEARINGS

The Committee’s Subcommittee on Africa held a hearing on the

crisis titled Zimbabwe: Democracy on the Line, June 13, 2000.

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COMMITTEE CONSIDERATION

On November 28, 2001, the Committee met in open session and

ordered favorably reported the bill S. 494 with amendment by voice

vote, a quorum being present.

VOTES OF THE COMMITTEE

There were no recorded votes of the Committee.

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the

House of Representatives, the Committee reports that the findings

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report.

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of House Rule XIII is inapplicable because this legislation does not provide new budgetary authority or increased tax

expenditures.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the

House of Representatives, the Committee sets forth, with respect to

the bill, S. 494, the following estimate and comparison prepared by

the Director of the Congressional Budget Office under section 402

of the Congressional Budget Act of 1974:

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, November 30, 2001.

Hon. HENRY J. HYDE, Chairman,

Committee on International Relations,

House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 494, the Zimbabwe Democracy and Economic Recovery Act of 2001.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Joseph C. Whitehill, who

can be reached at 226–2840.

Sincerely,

DAN L. CRIPPEN, Director.

Enclosure

cc: Honorable Tom Lantos

Ranking Democratic Member

S. 494—Zimbabwe Democracy and Economic Recovery Act of 2001.

SUMMARY

S. 494 would support a transition to democracy and promote economic recovery in Zimbabwe through a set of incentives and sanctions. The act would require the United States to oppose lending

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by international financial institutions to or debt relief for

Zimbabwe until the President certifies to the Congress that certain

conditions are satisfied. It would, however, authorize additional

funds for programs to reform landholding and to promote democracy and good governance in Zimbabwe. Assuming the appropriation of the authorized amounts, CBO estimates that implementing

the act would cost $23 million over the 2002–2006 period. Because

S. 494 would not affect direct spending or receipts, pay-as-you-go

procedures would not apply.

S. 494 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 S. 494 is shown in the following table. The costs of this legislation fall within budget function 150 (international affairs).

BASIS OF ESTIMATE

S. 494 would earmark $20 million for land reform and $6 million

for programs to promote democracy and good governance in

Zimbabwe from funds otherwise authorized to be appropriated in

2002 for development assistance and the economic support fund.

No funds are currently authorized for 2002. CBO assumes that the

specified amounts would be appropriated before the end of the session, and that outlays would follow historical spending patterns.

By fiscal year, in millions of dollars

2001 2002 2003 2004 2005 2006

SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Zimbabwe

Budget Authority 1 16 0 0 0 0 0

Estimated Outlays 22 19 10 5 3 2

Proposed Changes

Authorization Level 0 26 0 0 0 0

Estimated Outlays 0 2 8 7 4 2

Spending Under S. 494 for Zimbabwe

Authorization Level 1 16 26 0 0 0 0

Estimated Outlays 22 21 18 12 7 4

1 The 2001 level is the amount appropriated for that year.

PAY-AS-YOU-GO CONSIDERATIONS:

None.

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

S. 494 contains no intergovernmental or private-sector mandates

as defined in UMRA and would not affect the budgets of state,

local, or tribal governments.

PREVIOUS CBO ESTIMATE

On July 16, 2001, CBO transmitted a cost estimate for S. 494 as

ordered reported by the Senate Committee on Foreign Relations on

July 12, 2001. The two cost estimates are identical.

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ESTIMATE PREPARED BY:

Federal Costs: Joseph C. Whitehill (226–2840)

Impact on State, Local, and Tribal Governments: Elyse Goldman

(225–3220)

Impact on the Private Sector: Lauren Marks (226–2940)

ESTIMATE APPROVED BY:

Peter H. Fontaine

Deputy Assistant Director for Budget Analysis

PERFORMANCE GOALS AND OBJECTIVES

The goals and objectives of this legislation are consistent with

the Government Performance and Results Act. Plan submitted to

Congress by the Department of State and the Agency for International Development for their fiscal year 2002 programs.

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House

of Representatives, the Committee finds the authority for this legislation in article I, section 8, clause18 of the Constitution.

SECTION-BY-SECTION ANALYSIS AND DISCUSSION

Sec. 1. Title. Zimbabwe Democracy and Economic Recovery Act of

2001.

Sec. 2. Statement of Policy. Declares it is U.S. policy to support

the Zimbabwean people in their struggles to effect peaceful, democratic change, achieve broad-based and equitable economic growth,

and restore the rule of law.

Sec. 3. Definitions. International financial institutions refers to

multilateral development banks and the International Monetary

Fund.

Sec. 4. Support for Democratic Transition and Economic Recovery. Encourages the cancellation or reduction of indebtedness owed

to the United States and certain international financial institutions

by, or the extension of loans, credit, or guarantees by such institutions to, the government of Zimbabwe upon the President’s certification to the appropriate congressional committees that the government of Zimbabwe has: (1) restored the rule of law; (2) met certain

election or pre-election conditions; (3) demonstrated a commitment

to an equitable, legal, and transparent land reform program that

is consistent with agreements reached at the1998 International Donors’ Conference on Land Reform and Resettlement in Zimbabwe.

(4) made a good faith effort to end the war in the Democratic Republic of Congo; and (5) subordinated the Zimbabwean Armed

Forces, the National Police of Zimbabwe, and other state security

forces to the elected civilian government. Restricts multilateral assistance to Zimbabwe until such certification is made. Authorizes

the President to waive such requirements if it is in the national interest of the United States.

Sec. 5 . Support for Democratic Institutions, the Free Press and

Independent Media, and The Rule of Law. Authorizes the President

to provide certain foreign assistance funds to Zimbabwe to support

the establishment of democratic institutions, free press and indeVerDate 11-MAY-2000 20:42 Dec 04, 2001 Jkt 099006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6601 E:\HR\OC\HR312P1.XXX pfrm04 PsN: HR312P1
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pendent media, and the rule of law. Authorizes appropriations for

FY 2002.

Sec. 6. Sense of Congress on the Actions to Be Taken Against Individuals Responsible for Violence and the Breakdown of The Rule

of Law in Zimbabwe. Urges the President to consult immediately

with the governments of European Union member states, Canada,

and other appropriate foreign countries on specified actions to be

taken against individuals responsible for violence and the breakdown of the rule of law in Zimbabwe.

NEW ADVISORY COMMITTEES

S. 494 does not establish or authorize any new advisory committees.

CONGRESSIONAL ACCOUNTABILITY ACT

S. 494 does not apply to the legislative branch.

FEDERAL MANDAGES

S. 494 provides no Federal mandates.

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