I

103D CONGRESS

1ST SESSION H. R. 3063

To authorize United States participation in the replenishment of the resources

of the International Development Association and the Asian Development

Bank, to authorize a United States contribution to the Global Environment Facility, to authorize the provision of special debt relief for the

poorest, most heavily indebted countries through the multilateral approach of the Paris Club, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 14, 1993

Mr. FRANK of Massachusetts introduced the following bill; which was referred

to the Committee on Banking, Finance and Urban Affairs

A BILL

To authorize United States participation in the replenishment of the resources of the International Development

Association and the Asian Development Bank, to authorize a United States contribution to the Global Environment Facility, to authorize the provision of special debt

relief for the poorest, most heavily indebted countries

through the multilateral approach of the Paris Club,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘International Develop3 ment and Debt Relief Act of 1993’’.

4 TITLE I—INTERNATIONAL

5 DEVELOPMENT ASSOCIATION

6 SEC. 101. TENTH REPLENISHMENT.

7 The International Development Association Act (22

8 U.S.C. 284–284s) is amended by adding at the end the

9 following:

10 ‘‘SEC. 22. TENTH REPLENISHMENT.

11 ‘‘(a) AUTHORITY TO AGREE TO REPLENISHMENT

12 RESOLUTION.—The United States Governor may, on be13 half of the United States, agree to the resolution of the

14 Association entitled ‘Additions to Resources: Tenth Re15 plenishment’.

16 ‘‘(b) CONTRIBUTION AUTHORITY.—The United

17 States Governor may, on behalf of the United States, con18 tribute funds to the Association for the subscription and

19 contribution of the United States in accordance with the

20 resolution specified in subsection (a), subject to obtaining

21 the necessary appropriations.

22 ‘‘(c) LIMITATIONS ON AUTHORIZATION OF APPRO23 PRIATIONS.—In order to pay for the United States con24 tribution authorized by subsection (b), there are author25 ized to be appropriated for payment by the Secretary of
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1 the Treasury $3,750,000,000, without fiscal year limita2 tion.’’.

3 SEC. 102. ADVOCACY OF CERTAIN POLICIES.

4 (a) IN GENERAL.—Title XVI of the International Fi5 nancial Institutions Act (22 U.S.C. 262p–262p–5) is

6 amended by redesignating section 1620 as section 1621

7 and by inserting after section 1619 the following:

8 ‘‘SEC. 1620. ADVOCACY OF CERTAIN POLICIES.

9 ‘‘The Secretary of the Treasury shall instruct the

10 United States Executive Directors of the International

11 Bank for Reconstruction and Development and the Inter12 national Development Association to use the voices and

13 votes of the Executive Directors to encourage vigorously

14 their respective institutions to—

15 ‘‘(1) develop new methodologies to evaluate ade16 quately the effectiveness of the projects and pro17 grams of the respective institution in improving, on

18 a sustainable basis, the standard of living of the

19 poorest segments of the populations of the borrowing

20 countries, and increase the amount of resources of

21 the respective institution devoted to the projects and

22 programs identified as most effective;

23 ‘‘(2) include affected populations, local govern24 ments, and nongovernmental organizations in all
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1 phases of the project cycle, from project identifica2 tion to post-project evaluation;

3 ‘‘(3) include the economic empowerment of

4 women as a factor in evaluating the projects and

5 programs of the respective institution;

6 ‘‘(4) encourage borrowing countries to redirect

7 military expenditures to fund investments in human

8 capital, including measures that promote education,

9 training, and health;

10 ‘‘(5) evaluate adequately, through environ11 mental impact assessments, the effect on the envi12 ronment and nonrenewable resource base of recipi13 ents’ economic growth strategies and the structural

14 adjustment and sector lending programs of the re15 spective institution; and

16 ‘‘(6) maintain or expand debt relief programs;

17 and

18 ‘‘(7) promote good governance and the rule of

19 law in borrowing countries, by promoting fair and

20 workable laws that are—

21 ‘‘(A) necessary for economic development,

22 private sector development, and human rights;

23 ‘‘(B) fully communicated to the public; and

24 ‘‘(C) administered by an independent and

25 well-trained judiciary.’’.
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1 (b) REPORTS TO THE CONGRESS.—Not later than

2 September 30, 1994, and not later than September 30,

3 1995, the Secretary of the Treasury shall submit to the

4 Committee on Banking, Finance and Urban Affairs of the

5 House of Representatives and the Committee on Foreign

6 Relations of the Senate reports on the efforts made pursu7 ant to section 1620 of the International Financial Institu8 tions Act, and the results of such efforts.

9 SEC. 103. USE OF LOANS FOR MILITARY DEMOBILIZATION.

10 Title XVI of the International Financial Institutions

11 Act (22 U.S.C. 262p–262p–5), as amended by section 102

12 of this Act, is amended by redesignating section 1621 as

13 section 1622 and by inserting after section 1620 the fol14 lowing:

15 ‘‘SEC. 1621. USE OF LOANS FOR MILITARY DEMOBILIZA16 TION.

17 ‘‘The Secretary of the Treasury shall instruct the

18 United States Executive Director of the International De19 velopment Association to use the voice and vote of the Ex20 ecutive Director to encourage the Association to emphasize

21 the importance of facilitating the demobilization of mili22 tary forces.’’.
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1 TITLE II—ASIAN DEVELOPMENT

2 BANK

3 SEC. 201. FIFTH REPLENISHMENT.

4 The Asian Development Bank Act (22 U.S.C. 285–

5 285aa) is amended by adding at the end the following:

6 ‘‘SEC. 31. FIFTH REPLENISHMENT.

7 ‘‘(a) AUTHORITY TO AGREE TO REPLENISHMENT

8 RESOLUTION.—The United States Governor may, on be9 half of the United States, agree to the resolution of the

10 Bank entitled ‘Fifth Replenishment of the Asian Develop11 ment Fund and Second Regularized Replenishment of the

12 Technical Assistance Special Fund’.

13 ‘‘(b) CONTRIBUTION AUTHORITY.—The United

14 States Governor may, on behalf of the United States, con15 tribute funds to the Asian Development Fund, a special

16 fund of the Bank, for the subscription and contribution

17 of the United States in accordance with the resolution

18 specified in subsection (a), subject to obtaining the nec19 essary appropriations.

20 ‘‘(c) LIMITATIONS ON AUTHORIZATION OF APPRO21 PRIATIONS.—In order to pay for the United States con22 tribution authorized by subsection (b), there are author23 ized to be appropriated for payment by the Secretary of

24 the Treasury $680,000,000 without fiscal year limita25 tion.’’.
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1 TITLE III—GLOBAL

2 ENVIRONMENT FACILITY

3 SEC. 301. GLOBAL ENVIRONMENT FACILITY.

4 The Bretton Woods Agreement Act (22 U.S.C. 286–

5 286mm) is amended by adding at the end the following:

6 ‘‘SEC. 61. GLOBAL ENVIRONMENT FACILITY.

7 ‘‘(a) CONTRIBUTION AUTHORIZED.—The Secretary

8 of the Treasury may contribute to the Global Environment

9 Facility $30,810,000, subject to obtaining the necessary

10 appropriations.

11 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO12 PRIATIONS.—In order to pay for the United States con13 tribution provided for in subsection (a), there are author14 ized to be appropriated for payment by the Secretary of

15 the Treasury, $30,810,000 without fiscal year limitation,

16 if, not later than September 30, 1994, the Secretary of

17 the Treasury has certified that—

18 ‘‘(1) the Facility has established clear proce19 dures ensuring public availability of documentary in20 formation on all Facility projects;

21 ‘‘(2) the Facility has established clear proce22 dures ensuring that affected peoples in recipient

23 countries are consulted on all aspects of identifica24 tion, preparation, and implementation of Facility

25 projects; and
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1 ‘‘(3) the Facility governance process will pro2 vide for contributor country oversight of individual

3 projects in the work program, and specific provisions

4 will be established for the participation of non5 governmental organizations in all phases of the

6 project cycle, including identification, appraisal, im7 plementation, and evaluation.’’.

8 TITLE IV—REGIONAL MULTILAT9 ERAL DEVELOPMENT BANKS

10 SEC. 401. ADVOCACY OF CERTAIN POLICIES.

11 (a) IN GENERAL.—Title XVI of the International Fi12 nancial Institutions Act (22 U.S.C. 262p–262p–5), as

13 amended by sections 102 and 103 of this Act, is amended

14 by redesignating section 1622 as section 1623 and by in15 serting after section 1621 the following:

16 ‘‘SEC. 1622. ADVOCACY OF CERTAIN POLICIES.

17 ‘‘The Secretary of the Treasury shall instruct the

18 United States Executive Directors of each regional multi19 lateral development bank and of the European Bank for

20 Reconstruction and Development to use their voices and

21 votes to encourage vigorously their respective institutions

22 to—

23 ‘‘(1) develop new methodologies to evaluate ade24 quately the effectiveness of projects and programs of

25 the respective institution in improving, on a sustain-
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1 able basis, the standard of living of the poorest seg2 ments of the populations of the borrowing countries,

3 and increase the amount of resources of the respec4 tive institution devoted to the projects and programs

5 identified as most effective;

6 ‘‘(2) include affected populations, local govern7 ments, and nongovernmental organizations in all

8 phases of the project cycle, from project identifica9 tion to post-project evaluation;

10 ‘‘(3) include the economic empowerment of

11 women as a factor in evaluating projects and pro12 grams of the respective institution;

13 ‘‘(4) encourage borrowing countries to redirect

14 military expenditures to fund investments in human

15 capital, including measures that promote education,

16 training, and health; and

17 ‘‘(5) evaluate adequately, through environ18 mental impact assessments, the effect on the envi19 ronment and nonrenewable resource base of recipi20 ents’ economic growth strategies and structural ad21 justment and sector lending programs of the respec22 tive institution.’’.

23 (b) REPORTS TO THE CONGRESS.—Not later than

24 September 30, 1994, and not later than September 30,

25 1995, the Secretary of the Treasury shall submit to the
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1 Committee on Banking, Finance and Urban Affairs of the

2 House of Representatives and the Committee on Foreign

3 Relations of the Senate reports on the efforts made pursu4 ant to section 1622 of the International Financial Institu5 tions Act, and the results of such efforts.

6 TITLE V—SPECIAL DEBT RELIEF

7 SEC. 501. SPECIAL DEBT RELIEF FOR THE POOREST, MOST

8 HEAVILY INDEBTED COUNTRIES.

9 (a) DEBT REDUCTION AUTHORITY.—The President

10 may reduce amounts of principal and interest owed by any

11 eligible country to the Export-Import Bank of the United

12 States as a result of loans or guarantees made under the

13 Export-Import Bank Act of 1945.

14 (b) LIMITATIONS.—

15 (1) TYPES OF DEBT REDUCTION.—The author16 ity provided by subsection (a) may be exercised only

17 to implement multilateral agreements to reduce the

18 burden of official bilateral debt as set forth in the

19 minutes of the so-called ‘‘Paris Club’’ (also known

20 as ‘‘Paris Club Agreed Minutes’’).

21 (2) ELIGIBLE COUNTRIES.—

22 (A) DEFINITION.—As used in subsection

23 (a), the term ‘‘eligible country’’ means any

24 country that—
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1 (i) has excessively burdensome exter2 nal debt;

3 (ii) is eligible to borrow from the

4 International Development Association;

5 and

6 (iii) is not eligible to borrow from the

7 International Bank for Reconstruction and

8 Development.

9 (B) DETERMINATIONS.—Subject to sub10 paragraph (A), the President may determine

11 whether a country is an eligible country for

12 purposes of subsection (a).

13 (C) AUTHORITY TO EXCLUDE COUNTRIES

14 WITH UNACCEPTABLE HUMAN RIGHTS RECORDS

15 OR EXCESSIVE MILITARY EXPENDITURES.—

16 Notwithstanding subparagraphs (A) and (B), a

17 country shall not be an eligible country for pur18 poses of subsection (a) if, in the sole discretion

19 of the President, the President determines

20 that—

21 (i) the human rights record of the

22 country is unacceptable; or

23 (ii) the level of military expenditures

24 by the country is excessive.
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1 (3) APPROPRIATIONS.—The authority provided

2 by subsection (a) may be exercised only in such

3 amounts or to such extent as is provided in advance

4 in appropriations Acts.

5 (c) LIMITATIONS ON AUTHORIZATION OF APPRO6 PRIATIONS.—For debt reduction pursuant to this section,

7 there are authorized to be appropriated to the President

8 $48,300,000, without fiscal year limitation, except that

9 not more than $11,500,000 may be so appropriated for

10 fiscal year 1994.

11 (d) The Congress encourages the President to use the

12 amounts appropriated pursuant to subsection (c) to reduce

13 the bilateral debt of any eligible country in accordance

14 with the so-called ‘‘Trinidad Terms’’.

15 TITLE VI—MEASURES OF

16 MILITARY SPENDING

17 SEC. 601. JOINT DEVELOPMENT OF MEASURES OF MILI18 TARY SPENDING.

19 Section 60 of the Bretton Woods Agreements Act (22

20 U.S.C. 286mm) is amended—

21 (1) in subsection (a)—

22 (A) in paragraph (1)—

23 (i) by striking ‘‘BY THE FUND’’;
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1 (ii) by striking ‘‘Director of the

2 Fund’’ and inserting ‘‘Directors of the

3 Fund and of the Bank’’;

4 (iii) by striking ‘‘urge the Fund, in

5 consultation with the Bank, to continue to

6 develop’’ and inserting ‘‘urge the Fund and

7 the Bank to cooperate and coordinate in

8 the continued development of’’; and

9 (iv) by inserting ‘‘, and in the report10 ing of such levels’’ before the period; and

11 (B) in paragraph (2), by inserting ‘‘and

12 the Bank’’ after ‘‘Fund’’; and

13 (2) in subsection (b)—

14 (A) by striking ‘‘BY FUND’’;

15 (B) by striking ‘‘Director of the Fund’’

16 and inserting ‘‘Directors of the Fund and of the

17 Bank’’;

18 (C) by striking ‘‘urge the Fund’’ and in19 serting ‘‘urge the Fund and the Bank’’;

20 (D) by striking ‘‘Board of the Fund’’ and

21 inserting ‘‘Boards of the Fund and of the

22 Bank, respectively,’’; and

23 (E) by striking ‘‘estimate by the Fund’’

24 and inserting ‘‘joint estimate of the Fund and

25 the Bank’’.
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