appropriate, the policy provisions in this part that are applicable to development assistance activities.

(2) DEFAULT AND PROCUREMENT PROVISIONS.—

(A) DEFAULT PROVISION.-The provisions of section 620(q), or any comparable provision of law, shall not be construed to prohibit assistance to a country in the event that a private sector recipient of assistance furnished under this section is in default in its payment to the United States for the period specified in such section.

(B) PROCUREMENT PROVISION.-Assistance may be provided under this section without regard to section 604(a). (3) TERMS AND CONDITIONS OF CREDIT ASSISTANCE.

(A) IN GENERAL.-Credit assistance provided under this section shall be offered on such terms and conditions, including fees charged, as the Administrator may determine. (B) LIMITATION ON PRINCIPAL AMOUNT OF FINANCING.– The principal amount of loans made or guaranteed under this section in any fiscal year, with respect to any single event, may not exceed $30,000,000.

(C) EXCEPTION.-No payment may be made under any guarantee issued under this section for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.

(4) FULL FAITH AND CREDIT.-All guarantees issued under this section shall constitute obligations, in accordance with the terms of such guarantees, of the United States of America, and the full faith and credit of the United States of America is hereby pledged for the full payment and performance of such obligations to the extent of the guarantee.

(d) FUNDING.

(1) ALLOCATION OF FUNDS.-Of the amounts made available to carry out this part for the fiscal year 2001, up to $5,000,000 may be made available for

(A) the subsidy cost, as defined in section 502(5) of the Federal Credit Reform Act of 1990, to carry out this section; and

(B) the administrative costs to carry out this section. (2) RELATION TO OTHER FUNDING.-Amounts made available under paragraph (1) are in addition to amounts available under any other provision of law to carry out this section. (e) DEFINITIONS.-In this section:

(1) ADMINISTRATOR.-The term "Administrator" means the Administrator of the agency primarily responsible for administering this part.

(2) APPROPRIATE CONGRESSIONAL COMMITTEES.-The term "appropriate congressional committees" means the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives.

(3) UNITED STATES-SUPPORTED MICROFINANCE INSTITUTION.The term "United States-supported microfinance institution" means a financial intermediary that has received funds made available under part I of this Act for fiscal year 1980 or any subsequent fiscal year.

SEC. 133.124 PROGRAMS TO ENCOURAGE GOOD GOVERNANCE. (a) ESTABLISHMENT OF PROGRAMS.—

(1) IN GENERAL.-The President is authorized to establish programs that combat corruption, improve transparency and accountability, and promote other forms of good governance in countries described in paragraph (2).

(2) COUNTRIES DESCRIBED.-A country described in this paragraph is a country that is eligible to receive assistance under this part (including chapter 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 programs 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 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 Perceptions Index, standards and codes set forth by the International Bank for Reconstruction and Development and the International Monetary Fund, and other relevant criteria.

(4) RELATION TO OTHER LAWS.—

(A) IN GENERAL.-Assistance provided for countries under programs established pursuant to paragraph (1) may be made available notwithstanding any other provision of law that restricts assistance to foreign countries. Assistance provided under a program established pursuant to paragraph (1) for a country that would otherwise be restricted from receiving such assistance but for the preceding sentence may not be provided directly to the government of the country.

(B) EXCEPTION.-Subparagraph (A) does not apply with respect to

(i) section 620A of this Act or any comparable provision of law prohibiting assistance to countries that support international terrorism; or

(ii) section 907 of the Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992.

(b) SPECIFIC PROJECTS AND ACTIVITIES.-The programs established pursuant to subsection (a) shall include, 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 public officials, political parties, and candidates for public office, open budgeting processes, and transparent financial management systems;

124 22 U.S.C. 2152c. Added by sec. 205(a) of the International Anti-Corruption and Good Governance Act of 2000 (title II of Public Law 106-309; 114 Stat. 1092).

(3) support the establishment of audit offices, inspectors general offices, third party monitoring of government procurement processes, and anti-corruption agencies;

(4) promote responsive, transparent, and accountable legislatures and local governments that ensure legislative and local oversight 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 framework for commercial transactions that fosters business 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 information; and

(9) engage civil society in the fight against corruption. (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 drafting of anti-corruption, privatization, and competitive statutory and administrative codes), drafting of anti-corruption, privatization, and competitive statutory and administrative codes, support for independent media and publications, financing of the program and operating costs of nongovernmental organizations that carry out such projects or activities, and assistance for travel of individuals to the United States and other countries for such projects and activities.

(d) 125 ANNUAL REPORT.

(1) IN GENERAL.-The Secretary of State, in consultation with the Secretary of Commerce and the Administrator of the United States Agency for International Development, shall prepare and transmit to the Committee on International Relations and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate an annual report

on

(A) projects and activities carried out under programs established under subsection (a) for the prior year in priority countries identified pursuant to subsection (a)(3); and (B) projects and activities carried out under programs to combat corruption, improve transparency and accountability, and promote other forms of good governance established under other provisions of law for the prior year in such countries.

125 Sec. 205(b) of the International Anti-Corruption and Good Governance Act of 2000 (title II of Public Law 106-309; 114 Stat. 1092) required the following:

"(b) DEADLINE FOR INITIAL REPORT.-The initial annual report required by section 133(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.".

(2) REQUIRED CONTENTS.-The report required 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 diplomatic 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 corruption and improve transparency and accountability 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.

SEC. 134.126 ASSISTANCE TO FOREIGN COUNTRIES TO MEET MINIMUM STANDARDS FOR THE ELIMINATION OF TRAFFICKING. (a) AUTHORIZATION.-The President is authorized to provide assistance to foreign countries directly, or through nongovernmental and multilateral organizations, for programs, projects, and activities designed to meet the minimum standards for the elimination of trafficking (as defined in section 103 of the Trafficking Victims Protection Act of 2000), including

(1) the drafting of laws to prohibit and punish acts of trafficking;

(2) the investigation and prosecution of traffickers;

(3) the creation and maintenance of facilities, programs, projects, and activities for the protection of victims; and

(4) the expansion of exchange programs and international visitor programs for governmental and nongovernmental personnel to combat trafficking.

(b) 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.

126 22 U.S.C. 2152d. Added by sec. 109 of the Trafficking Victims Protection Act of 2000 (division A of Public Law 106-386; 114 Stat. 1481). For full text of the Trafficking Victims Protection Act of 2000, see vol. II. Sec. 107(a) of that Act (22 U.S.C. 7105(a)) provided the following: "SEC. 107. PROTECTION AND ASSISTANCE FOR VICTIMS OF TRAFFICKING. "(a) ASSISTANCE FOR VICTIMS IN OTHER COUNTRIES.—

"(1) IN GENERAL.-The Secretary of State and the Administrator of the United States Agency for International Development, in consultation with appropriate nongovernmental organizations, shall establish and carry out programs and initiatives in foreign countries to assist in the safe integration, reintegration, or resettlement, as appropriate, of victims of trafficking. Such programs and initiatives shall be designed to meet the appropriate assistance needs of such persons and their children, as identified by the Task Force.

“(2) ADDITIONAL REQUIREMENT.-In establishing and conducting programs and initiatives described in paragraph (1), the Secretary of State and the Administrator of the United States Agency for International Development shall take all appropriate steps to enhance cooperative efforts among foreign countries, including countries of origin of victims of trafficking, to assist in the integration, reintegration, or resettlement, as appropriate, of victims of trafficking, including stateless victims.".

Chapter 2-Other Programs 127

Sec. 201.128 General Authority. *** [Repealed-1978]
Sec. 202.128 Authorization. *** [Repealed-1978]
Sec. 203.128 Fiscal Provisions. * * * [Repealed-1978]
Sec. 204.128 Development Loan Committee.
pealed-1978]

***

[Re

Sec. 205.129 Relating to Transfers to International Financial Institutions. * * * [Repealed-1972]

Title I-Multilateral and Regional Development Programs 130 Sec. 206.131 Regional Development in Africa. The President is requested to seek and to take appropriate action, in cooperation and consultation with African and other interested nations and with international development organizations, to further and assist in the advancement of African regional development institutions, including the African Development Bank, with the view toward promoting African economic development.

Sec. 207.128 Purposes of Development Assistance. * * * [Repealed-1978]

Sec. 208.128 Self-Help Criteria. *** [Repealed-1978]

Sec. 209.132 Multilateral and Regional Programs.—(a) The Congress recognizes that the planning and administration of development assistance by, or under the sponsorship of the United Nations, multilateral lending institutions, and other multilateral organizations may contribute to the efficiency and effectiveness of that assistance through participation of other donors in the development effort, improved coordination of policies and programs, pooling of knowledge, avoidance of duplication of facilities and manpower, and greater encouragement of self-help performance.

(b) 133 It is further the sense of the Congress (1) that where problems or opportunities are common to two or more countries in a region, in such fields as agriculture, education, transportation, communications, power, watershed development, disease control, and establishment of development banks, these countries often can more effectively resolve such problems and exploit such opportunities by joining together in regional organizations or working together on regional programs, (2) that assistance often can be uti

127 The chapter heading "Other Programs" was inserted in lieu of "Development Assistance" by sec. 102(g)(1)(B) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 942).

128 Secs. 201, 202, 203, 204, 207, and 208 were repealed by sec. 102(g)(1)(A) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 942). The text of sec. 204 was subsequently reinserted as subsec. (e) of sec. 122 of this Act.

129 Sec. 205 was repealed by sec. 101(d) of the FA Act of 1971 (Public Law 92-226; 86 Stat. 21).

130 Sec. 102(g)(1)(C) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 942) added this new title heading.

131 22 U.S.C. 2166. Sec. 206 was added by sec. 102(b) of the FA Act of 1965.

132 22 U.S.C. 2169. Sec. 209 was added by sec. 102(e) of the FA Act of 1967. Sec. 101(c)(1) of the FA Act of 1971 (Public Law 92-226; 86 Stat. 21) amended subsection (a), which formerly read as follows:

"(a) Multilateral Programs.-The Congress recognizes that planning and administration of development assistance by, or under the sponsorship of, multilateral lending institutions and other international organizations may, in some instances, contribute to the efficiency and effectiveness of that assistance through participation of other donors in the development effort, improved coordination of policies and programs, pooling of knowledge, avoidance of duplication of facilities and manpower, and greater encouragement of self-help performance.".

133 The words "Regional Programs.-," which appeared at this point, were struck out by sec. 101(c)(3) of the FA Act of 1971 (Public Law 92-226; 86 Stat. 21).