IIB
106TH CONGRESS
2D SESSION
H. R. 4697
IN THE SENATE OF THE UNITED STATES
JULY 26, 2000
Received; read twice and referred to the Committee on Foreign Relations
AN ACT
To amend the Foreign Assistance Act of 1961 to ensure
that United States assistance programs promote good
governance by assisting other countries to combat cor-
ruption throughout society and to promote transparency
and increased accountability for all levels of government
and throughout the private sector.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘International Anti-Cor-
ruption and Good Governance Act of 2000’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds the following:
(1) Widespread corruption endangers the sta-
bility and security of societies, undermines democ-
racy, and jeopardizes the social, political, and eco-
nomic development of a society.
(2) Corruption facilitates criminal activities,
such as money laundering, hinders economic devel-
opment, inflates the costs of doing business, and un-
dermines the legitimacy of the government and pub-
lic trust.
(3) In January 1997 the United Nations Gen-
eral Assembly adopted a resolution urging member
states to carefully consider the problems posed by
the international aspects of corrupt practices and to
study appropriate legislative and regulatory meas-
ures to ensure the transparency and integrity of fi-
nancial systems.
(4) The United States was the first country to
criminalize international bribery through the enact-
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ment of the Foreign Corrupt Practices Act of 1977
and United States leadership was instrumental in
the passage of the Organization for Economic Co-
operation and Development (OECD) Convention on
Combatting Bribery of Foreign Public Officials in
International Business Transactions.
(5) The Vice President, at the Global Forum on
Fighting Corruption in 1999, declared corruption to
be a direct threat to the rule of law and the Sec-
retary of State declared corruption to be a matter of
profound political and social consequence for our ef-
forts to strengthen democratic governments.
(6) The Secretary of State, at the Inter-Amer-
ican Development Bank’s annual meeting in March
2000, declared that despite certain economic
achievements, democracy is being threatened as citi-
zens grow weary of the corruption and favoritism of
their official institutions and that efforts must be
made to improve governance if respect for demo-
cratic institutions is to be regained.
(7) In May 1996 the Organization of American
States (OAS) adopted the Inter-American Conven-
tion Against Corruption requiring countries to pro-
vide various forms of international cooperation and
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assistance to facilitate the prevention, investigation,
and prosecution of acts of corruption.
(8) Independent media, committed to fighting
corruption and trained in investigative journalism
techniques, can both educate the public on the costs
of corruption and act as a deterrent against corrupt
officials.
(9) Competent and independent judiciary,
founded on a merit-based selection process and
trained to enforce contracts and protect property
rights, is critical for creating a predictable and con-
sistent environment for transparency in legal proce-
dures.
(10) Independent and accountable legislatures,
responsive political parties, and transparent electoral
processes, in conjunction with professional, account-
able, and transparent financial management and
procurement policies and procedures, are essential to
the promotion of good governance and to the combat
of corruption.
(11) Transparent business frameworks, includ-
ing modern commercial codes and intellectual prop-
erty rights, are vital to enhancing economic growth
and decreasing corruption at all levels of society.
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(12) The United States should attempt to im-
prove accountability in foreign countries, including
by—
(A) promoting transparency and account-
ability through support for independent media,
promoting financial disclosure by public offi-
cials, political parties, and candidates for public
office, open budgeting processes, adequate and
effective internal control systems, suitable fi-
nancial management systems, and financial and
compliance reporting;
(B) supporting the establishment of audit
offices, inspectors general offices, third party
monitoring of government procurement proc-
esses, and anti-corruption agencies;
(C) promoting responsive, transparent, and
accountable legislatures that ensure legislative
oversight and whistle-blower protection;
(D) promoting judicial reforms that crim-
inalize corruption and promoting law enforce-
ment that prosecutes corruption;
(E) fostering business practices that pro-
mote transparent, ethical, and competitive be-
havior in the private sector through the develop-
ment of an effective legal framework for com-
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merce, including anti-bribery laws, commercial
codes that incorporate international standards
for business practices, and protection of intel-
lectual property rights; and
(F) promoting free and fair national, state,
and local elections.
(b) PURPOSE.—The purpose of this Act is to ensure
that United States assistance programs promote good gov-
ernance by assisting other countries to combat corruption
throughout society and to improve transparency and ac-
countability at all levels of government and throughout the
private sector.
SEC. 3. DEVELOPMENT ASSISTANCE POLICIES.
(a) GENERAL POLICY.—Section 101(a) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2151(a)) is
amended in the fifth sentence—
(1) by striking ‘‘four’’ and inserting ‘‘five’’;
(2) in paragraph (3), by striking ‘‘and’’ at the
end;
(3) in paragraph (4), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(5) the promotion of good governance through
combating corruption and improving transparency
and accountability.’’ .
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(b) DEVELOPMENT
ASSISTANCE
POLICY.—Para-
graph (4) of the third sentence of section 102(b) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151–1(b))
is amended—
(1) in subparagraph (E), by striking ‘‘and’’ at
the end;
(2) in subparagraph (F), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) progress in combating corruption and
improving transparency and accountability in
the public and private sector.’’.
SEC. 4. DEPARTMENT OF THE TREASURY TECHNICAL AS-
SISTANCE 
PROGRAM 
FOR 
DEVELOPING
COUNTRIES.
Section 129(b) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151aa(b)) is amended by adding at the end
the following:
‘‘(3) EMPHASIS
ON
ANTI-CORRUPTION.—Such
technical assistance shall include elements designed
to combat anti-competitive, unethical and corrupt
activities, including protection against actions that
may distort or inhibit transparency in market mech-
anisms and, to the extent applicable, privatization
procedures.’’.
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SEC. 5. AUTHORIZATION OF GOOD GOVERNANCE PRO-
GRAMS.
(a) IN GENERAL.—Chapter 1 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amend-
ed by adding at the end the following:
‘‘SEC. 131. PROGRAMS TO ENCOURAGE GOOD GOVERN-
ANCE.
‘‘(a) ESTABLISHMENT OF PROGRAMS.—
‘‘(1) IN GENERAL.—The President is author-
ized to establish programs that combat corruption,
improve transparency and accountability, and pro-
mote other forms of good governance in countries
described in paragraph (2).
‘‘(2) COUNTRIES DESCRIBED.—A country de-
scribed in this paragraph is a country that is eligible
to receive assistance under this part (including chap-
ter 4 of part II of this Act) or the Support for East
European Democracy (SEED) Act of 1989.
‘‘(3) PRIORITY.—In carrying out paragraph (1),
the President shall give priority to establishing pro-
grams in countries that received a significant
amount of United States foreign assistance for the
prior fiscal year, or in which the United States has
a significant economic interest, and that continue to
have the most persistent problems with public and
private corruption. In determining which countries
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have the most persistent problems with public and
private corruption under the preceding sentence, the
President shall take into account criteria such as the
Transparency International Annual Corruption Per-
ceptions Index, standards and codes set forth by the
International Bank for Reconstruction and Develop-
ment and the International Monetary Fund, and
other relevant criteria.
‘‘(4) REQUIREMENT.—Assistance provided for
countries under programs established pursuant to
paragraph (1) may be made available notwith-
standing any other provision of law that restricts as-
sistance to foreign countries (other than section
620A of this Act or any other comparable provision
of law).
‘‘(b) SPECIFIC PROJECTS
AND ACTIVITIES.—The
programs established pursuant to subsection (a) shall in-
clude, to the extent appropriate, projects and activities
that—
‘‘(1) support responsible independent media to
promote oversight of public and private institutions;
‘‘(2) implement financial disclosure among pub-
lic officials, political parties, and candidates for pub-
lic office, open budgeting processes, and transparent
financial management systems;
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‘‘(3) support the establishment of audit offices,
inspectors general offices, third party monitoring of
government procurement processes, and anti-corrup-
tion agencies;
‘‘(4) promote responsive, transparent, and ac-
countable legislatures that ensure legislative over-
sight and whistle-blower protection;
‘‘(5) promote legal and judicial reforms that
criminalize corruption and law enforcement reforms
and development that encourage prosecutions of
criminal corruption;
‘‘(6) assist in the development of a legal frame-
work for commercial transactions that fosters busi-
ness practices that promote transparent, ethical, and
competitive behavior in the economic sector, such as
commercial codes that incorporate international
standards and protection of intellectual property
rights;
‘‘(7) promote free and fair national, state, and
local elections;
‘‘(8) foster public participation in the legislative
process and public access to government informa-
tion; and
‘‘(9) engage civil society in the fight against
corruption.
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‘‘(c) CONDUCT
OF PROJECTS
AND ACTIVITIES.—
Projects and activities under the programs established
pursuant to subsection (a) may include, among other
things, training and technical assistance (including draft-
ing of anti-corruption, privatization, and competitive stat-
utory and administrative codes), drafting of anti-corrup-
tion, privatization, and competitive statutory and adminis-
trative codes, support for independent media and publica-
tions, financing of the program and operating costs of
nongovernmental organizations that carry out such
projects or activities, and assistance for travel of individ-
uals to the United States and other countries for such
projects and activities.
‘‘(d) ANNUAL REPORT.—
‘‘(1) IN GENERAL.—The President shall pre-
pare and transmit to the Committee on Inter-
national Relations of the House of Representatives
and the Committee on Foreign Relations of the Sen-
ate an annual report on—
‘‘(A) projects and activities carried out
under programs established under subsection
(a) for the prior year in priority countries iden-
tified pursuant to subsection (a)(3); and
‘‘(B) projects and activities carried out
under programs to combat corruption, improve
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transparency and accountability, and promote
other forms of good governance established
under other provisions of law for the prior year
in such countries.
‘‘(2) REQUIRED
CONTENTS.—The report re-
quired by paragraph (1) shall contain the following
information with respect to each country described
in paragraph (1):
‘‘(A) A description of all United States
Government-funded programs and initiatives to
combat corruption and improve transparency
and accountability in the country.
‘‘(B) A description of United States diplo-
matic efforts to combat corruption and improve
transparency and accountability in the country.
‘‘(C) An analysis of major actions taken by
the government of the country to combat cor-
ruption and improve transparency and account-
ability in the country.
‘‘(e) FUNDING.—Amounts made available to carry
out the other provisions of this part (including chapter 4
of part II of this Act) and the Support for East European
Democracy (SEED) Act of 1989 shall be made available
to carry out this section.’’.
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(b) DEADLINE FOR INITIAL REPORT.—The initial
annual report required by section 131(d)(1) of the Foreign
Assistance Act of 1961, as added by subsection (a), shall
be transmitted not later than 180 days after the date of
the enactment of this Act.
Passed the House of Representatives July 25, 2000.
Attest:
Jeff Trandahl
Clerk.