II 

108TH CONGRESS 

2D SESSION S. 2305 

To authorize programs that support economic and political development in 

the Greater Middle East and Central Asia and support for three new 

multilateral institutions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 8, 2004 

Mr. HAGEL (for himself and Mr. LIEBERMAN) introduced the following bill; 

which was read twice and referred to the Committee on Foreign Relations 

A BILL 

To authorize programs that support economic and political 

development in the Greater Middle East and Central 

Asia and support for three new multilateral institutions, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Greater Middle East 

5 and Central Asia Development Act of 2004’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is to authorize assistance for 

8 political freedom and economic development, particularly 
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1 through private sector development, in the Greater Middle 

2 East and Central Asia, including contributions to and par3 ticipation in 3 new entities: a Trust for Democracy, a De4 velopment Foundation, and a Development Bank. 

5 SEC. 3. FINDINGS. 

6 Congress makes the following findings: 

7 (1) The terrorist attacks of September 11, 

8 2001, signaled a turning point in United States for9 eign policy. 

10 (2) Al Qaeda and affiliated groups have estab11 lished a terrorist network with linkages in Afghani12 stan, Pakistan, throughout the Greater Middle East 

13 and Central Asia, and around the world. 

14 (3) The war on terrorism requires that the 

15 United States consider the Greater Middle East and 

16 Central Asia as a strategic region with its own polit17 ical, economic, and security dynamics. 

18 (4) While rich in cultural, geographic, and lan19 guage diversity, the Greater Middle East and Cen20 tral Asia face common impediments to economic de21 velopment and political freedom. 

22 (5) Although poverty and economic under23 development do not alone cause terrorism, the ex24 pansion of economic growth, free trade, and private 

25 sector development can contribute to an environment 
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1 that undercuts radical political tendencies that give 

2 rise to terrorism. 

3 (6) Given the relationship between economic 

4 and political development and winning the global 

5 war on terror, America’s support for freedom in the 

6 Greater Middle East and Central Asia must be 

7 matched with expanded and new programs of part8 nership with the people and governments of the re9 gion to promote good governance, political freedom, 

10 private sector development, and more open econo11 mies. 

12 (7) The United States and other donors should 

13 support those citizens of the Greater Middle East 

14 and Central Asia who share our desire to undertake 

15 reforms that result in more open political and eco16 nomic systems. 

17 (8) Turkey, which should be supported in its 

18 aspirations for membership in the European Union, 

19 plays a pivotal and unique role in efforts to bring 

20 economic development and stability to the Greater 

21 Middle East and Central Asia. 

22 (9) The President should seek new mechanisms 

23 to work together with European and other nations, 

24 as well as with the countries of the Greater Middle 

25 East and Central Asia to promote political and eco-
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1 nomic development in the Greater Middle East and 

2 Central Asia. 

3 (10) Because the dynamics of the Greater Mid4 dle East and Central Asia have a serious impact on 

5 global security, the North Atlantic Treaty Organiza6 tion (NATO) should now shift its strategic focus to 

7 the region, including expanded roles in Iraq, Afghan8 istan, and the Mediterranean. 

9 SEC. 4. DEFINITION; SPECIAL RULE. 

10 (a) GREATER MIDDLE EAST AND CENTRAL ASIA DE11 FINED.—In this Act, the term ‘‘Greater Middle East and 

12 Central Asia’’ means the 22 members of the Arab League 

13 (Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jor14 dan, Kuwait, Lebanon, Libya, Mauritania, Morocco, 

15 Oman, the Palestinian Authority, Qatar, Saudi Arabia, 

16 Somalia, Sudan, Syria, Tunisia, United Arab Emirates, 

17 and Yemen), Afghanistan, Iran, Israel, Kazakhstan, 

18 Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, 

19 and Uzbekistan. 

20 (b) SPECIAL RULE.—A country listed in subsection 

21 (a) may not receive assistance under this Act if such coun22 try is identified as a country supporting international ter23 rorism pursuant to section 6(j)(1)(A) of the Export Ad24 ministration Act of 1979 (as in effect pursuant to the 

25 International Emergency Economic Powers Act; 50 U.S.C. 
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1 1701 et seq.), section 40(d) of the Arms Export Control 

2 Act (22 U.S.C. 2780(d)), section 620A of the Foreign As3 sistance Act of 1961 (22 U.S.C. 2371), or any other provi4 sion of law. 

5 SEC. 5. AUTHORIZATION OF ASSISTANCE. 

6 Notwithstanding any other provision of law, the 

7 President is authorized to provide assistance to the Great8 er Middle East and Central Asia for the purpose of pro9 moting economic and political freedoms, free trade, and 

10 private sector development, including the programs de11 scribed in the following paragraphs: 

12 (1) UNITED STATES CONTRIBUTION TO AND

13 MEMBERSHIP IN A GREATER MIDDLE EAST AND

14 CENTRAL ASIA DEVELOPMENT BANK.—The Presi15 dent is authorized to work with other donors and 

16 representatives from the Greater Middle East and 

17 Central Asia to establish a Greater Middle East and 

18 Central Asia Development Bank to promote private 

19 sector development, trade, including intra-regional 

20 trade, and investment in the Greater Middle East 

21 and Central Asia. 

22 (2) CREATION OF A GREATER MIDDLE EAST

23 AND CENTRAL ASIA DEVELOPMENT FOUNDATION.— 

24 The President is authorized to work with other do25 nors and representatives from the Greater Middle 
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1 East and Central Asia to establish a multilateral 

2 Greater Middle East and Central Asia Development 

3 Foundation to assist in the administration and imple4 mentation of assistance programs, including public5 private programs, pursuant to this Act, with specific 

6 emphasis on programs at the grass-roots level, to in7 clude volunteer-based organizations and other non8 governmental organizations that support private sec9 tor development, entrepreneurship, and development 

10 of small- and medium-size enterprises and exchanges. 

11 (3) CREATION OF TRUST FOR DEMOCRACY.— 

12 The President is authorized to establish, together 

13 with other donors and private sector and nongovern14 mental leaders from the Greater Middle East and 

15 Central Asia, a multilateral, public-private Trust for 

16 Democracy to support grass-roots development of 

17 civil society, democratic reform, good governance 

18 practices, and rule of law reform in the Greater Mid19 dle East and Central Asia. Private foundations shall 

20 be encouraged to participate in the Trust through 

21 the provision of matching funds. 
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1 SEC. 6. SENSE OF CONGRESS REGARDING COORDINATION 

2 OF ASSISTANCE TO THE GREATER MIDDLE 

3 EAST AND CENTRAL ASIA. 

4 Recognizing the importance of coordination of assist5 ance to the Greater Middle East and Central Asia, and 

6 the strategic imperatives required by the war on terrorism, 

7 it is the sense of Congress that— 

8 (1) the Secretary of State and the heads of 

9 other relevant Government agencies should consider 

10 new approaches to the coordination of the provision 

11 of political and economic support for the Greater 

12 Middle East and Central Asia; and 

13 (2) the Secretary of State should consider ap14 pointing a Coordinator for Assistance to the Greater 

15 Middle East and Central Asia. 

16 SEC. 7. PROGRAM REPORTS. 

17 (a) REQUIREMENT FOR REPORTS.—Beginning on 

18 January 31, 2005, and annually thereafter, the President 

19 shall submit to Congress a report on the progress of the 

20 Greater Middle East and Central Asia, the Greater Middle 

21 East and Central Asia Development Bank, the Greater 

22 Middle East and Central Asia Development Foundation, 

23 and the Trust for Democracy in developing more open po24 litical and economic systems and the degree to which 

25 United States assistance has been effective at promoting 

26 these changes. 
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1 (b) CONTENT.—The reports required by subsection 

2 (a) shall include general information regarding such 

3 progress and specific information on the progress of each 

4 of the Greater Middle East and Central Asia Development 

5 Bank, the Greater Middle East and Central Asia Develop6 ment Foundation, and the Trust for Democracy in— 

7 (1) encouraging entrepreneurial development 

8 and supporting growth of small- and medium-size 

9 enterprises in the Greater Middle East and Central 

10 Asia; 

11 (2) promoting private sector development, 

12 democratic political reform, good governance build13 ing, rule of law reform, and other appropriate goals 

14 in the Greater Middle East and Central Asia; 

15 (3) fostering intra-regional trade and invest16 ment by United States businesses and financial in17 stitutions in the Greater Middle East and Central 

18 Asia; 

19 (4) developing public-private partnerships to 

20 carry out the purpose of this Act; and 

21 (5) encouraging the involvement of the Greater 

22 Middle East and Central Asia, and other donors in 

23 each institution. 
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1 SEC. 8. ENTERPRISE FUNDS REPORTS TO CONGRESS. 

2 Not later than 1 year after the date of enactment 

3 of this Act, the President shall submit to Congress a com4 prehensive report evaluating the appropriateness of the es5 tablishment of enterprise funds in the Greater Middle 

6 East and Central Asia. The report shall evaluate whether 

7 and to what extent enterprise funds might be an effective 

8 mechanism for promoting economic reform and investment 

9 in the Greater Middle East and Central Asia. 

10 SEC. 9. REPORT ON COORDINATION OF ASSISTANCE TO 

11 THE GREATER MIDDLE EAST AND CENTRAL 

12 ASIA. 

13 Not later than 1 year after the date of enactment 

14 of this Act, the President shall submit to Congress a re15 port that describes the measures that have been employed, 

16 and the measures that are planned to be employed, to im17 prove the coordination within the Department of State and 

18 among the heads of the relevant Government agencies of 

19 the provision of support to the Greater Middle East and 

20 Central Asia. 

21 SEC. 10. NOTIFICATIONS TO CONGRESS REGARDING AS22 SISTANCE. 

23 Section 634A of the Foreign Assistance Act of 1961 

24 (22 U.S.C. 2394–1) (relating to reprogramming notifica25 tions) shall apply with respect to obligations of funds 

26 made available to carry out this Act. 
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1 SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 

2 (a) AUTHORIZATION OF APPROPRIATIONS.—In addi3 tion to funds otherwise available for such purpose and for 

4 the countries to which this Act applies, there are author5 ized to be appropriated to the Department of State to 

6 carry out the provisions of this Act, $1,000,000,000 for 

7 each of the fiscal years 2005 through 2009. 

8 (b) AVAILABILITY OF FUNDS.—Amounts appro9 priated pursuant to subsection (a) shall remain available 

10 until expended. 

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