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.

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

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.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Greater Middle East and Central Asia Development Act of 2004'.

SEC. 2. PURPOSE.

The purpose of this Act is to authorize assistance for political freedom and economic development, particularly through private sector development, in the Greater Middle East and Central Asia, including contributions to and participation in 3 new entities: a Trust for Democracy, a Development Foundation, and a Development Bank.

SEC. 3. FINDINGS.

Congress makes the following findings:

(1) The terrorist attacks of September 11, 2001, signaled a turning point in United States foreign policy.

(2) Al Qaeda and affiliated groups have established a terrorist network with linkages in Afghanistan, Pakistan, throughout the Greater Middle East and Central Asia, and around the world.

(3) The war on terrorism requires that the United States consider the Greater Middle East and Central Asia as a strategic region with its own political, economic, and security dynamics.

(4) While rich in cultural, geographic, and language diversity, the Greater Middle East and Central Asia face common impediments to economic development and political freedom.

(5) Although poverty and economic underdevelopment do not alone cause terrorism, the expansion of economic growth, free trade, and private sector development can contribute to an environment that undercuts radical political tendencies that give rise to terrorism.

(6) Given the relationship between economic and political development and winning the global war on terror, America's support for freedom in the Greater Middle East and Central Asia must be matched with expanded and new programs of partnership with the people and governments of the region to promote good governance, political freedom, private sector development, and more open economies.

(7) The United States and other donors should support those citizens of the Greater Middle East and Central Asia who share our desire to undertake reforms that result in more open political and economic systems.

(8) Turkey, which should be supported in its aspirations for membership in the European Union, plays a pivotal and unique role in efforts to bring economic development and stability to the Greater Middle East and Central Asia.

(9) The President should seek new mechanisms to work together with European and other nations, as well as with the countries of the Greater Middle East and Central Asia to promote political and economic development in the Greater Middle East and Central Asia.

(10) Because the dynamics of the Greater Middle East and Central Asia have a serious impact on global security, the North Atlantic Treaty Organization (NATO) should now shift its strategic focus to the region, including expanded roles in Iraq, Afghanistan, and the Mediterranean.

SEC. 4. DEFINITION; SPECIAL RULE.

(a) GREATER MIDDLE EAST AND CENTRAL ASIA DEFINED- In this Act, the term `Greater Middle East and Central Asia' means the 22 members of the Arab League (Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, the Palestinian Authority, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, and Yemen), Afghanistan, Iran, Israel, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, and Uzbekistan.

(b) SPECIAL RULE- A country listed in subsection (a) may not receive assistance under this Act if such country is identified as a country supporting international terrorism pursuant to section 6(j)(1)(A) of the Export Administration Act of 1979 (as in effect pursuant to the International Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)), section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371), or any other provision of law.

SEC. 5. AUTHORIZATION OF ASSISTANCE.

Notwithstanding any other provision of law, the President is authorized to provide assistance to the Greater Middle East and Central Asia for the purpose of promoting economic and political freedoms, free trade, and private sector development, including the programs described in the following paragraphs:

(1) UNITED STATES CONTRIBUTION TO AND MEMBERSHIP IN A GREATER MIDDLE EAST AND CENTRAL ASIA DEVELOPMENT BANK- The President is authorized to work with other donors and representatives from the Greater Middle East and Central Asia to establish a Greater Middle East and Central Asia Development Bank to promote private sector development, trade, including intra-regional trade, and investment in the Greater Middle East and Central Asia.

(2) CREATION OF A GREATER MIDDLE EAST AND CENTRAL ASIA DEVELOPMENT FOUNDATION- The President is authorized to work with other donors and representatives from the Greater Middle East

and Central Asia to establish a multilateral Greater Middle East and Central Asia Development Foundation to assist in the administration and implementation of assistance programs, including public-private programs, pursuant to this Act, with specific emphasis on programs at the grass-roots level, to include volunteer-based organizations and other nongovernmental organizations that support private sector development, entrepreneurship, and development of small- and medium-size enterprises and exchanges.

(3) CREATION OF TRUST FOR DEMOCRACY- The President is authorized to establish, together with other donors and private sector and nongovernmental leaders from the Greater Middle East and Central Asia, a multilateral, public-private Trust for Democracy to support grass-roots development of civil society, democratic reform, good governance practices, and rule of law reform in the Greater Middle East and Central Asia. Private foundations shall be encouraged to participate in the Trust through the provision of matching funds.

SEC. 6. SENSE OF CONGRESS REGARDING COORDINATION OF ASSISTANCE TO THE GREATER MIDDLE EAST AND CENTRAL ASIA.

Recognizing the importance of coordination of assistance to the Greater Middle East and Central Asia, and the strategic imperatives required by the war on terrorism, it is the sense of Congress that--

(1) the Secretary of State and the heads of other relevant Government agencies should consider new approaches to the coordination of the provision of political and economic support for the Greater Middle East and Central Asia; and

(2) the Secretary of State should consider appointing a Coordinator for Assistance to the Greater Middle East and Central Asia.

SEC. 7. PROGRAM REPORTS.

(a) REQUIREMENT FOR REPORTS- Beginning on January 31, 2005, and annually thereafter, the President shall submit to Congress a report on the progress of the Greater Middle East and Central Asia, the Greater Middle East and Central Asia Development Bank, the Greater Middle East and Central Asia Development Foundation, and the Trust for Democracy in developing more open political and economic systems and the degree to which United States assistance has been effective at promoting these changes.

(b) CONTENT- The reports required by subsection (a) shall include general information regarding such progress and specific information on the progress of each of the Greater Middle East and Central Asia Development Bank, the Greater Middle East and Central Asia Development Foundation, and the Trust for Democracy in--

(1) encouraging entrepreneurial development and supporting growth of small- and medium-size enterprises in the Greater Middle East and Central Asia;

(2) promoting private sector development, democratic political reform, good governance building, rule of law reform, and other appropriate goals in the Greater Middle East and Central Asia;

(3) fostering intra-regional trade and investment by United States businesses and financial institutions in the Greater Middle East and Central Asia;

(4) developing public-private partnerships to carry out the purpose of this Act; and

(5) encouraging the involvement of the Greater Middle East and Central Asia, and other donors in each institution.

SEC. 8. ENTERPRISE FUNDS REPORTS TO CONGRESS.

Not later than 1 year after the date of enactment of this Act, the President shall submit to Congress a comprehensive report evaluating the appropriateness of the establishment of enterprise funds in the Greater Middle East and Central Asia. The report shall evaluate whether and to what extent enterprise funds might be an effective mechanism for promoting economic reform and investment in the Greater Middle East and Central Asia.

SEC. 9. REPORT ON COORDINATION OF ASSISTANCE TO THE GREATER MIDDLE EAST AND CENTRAL ASIA.

Not later than 1 year after the date of enactment of this Act, the President shall submit to Congress a report that describes the measures that have been employed, and the measures that are planned to be employed, to improve the coordination within the Department of State and among the heads of the relevant Government agencies of the provision of support to the Greater Middle East and Central Asia.

SEC. 10. NOTIFICATIONS TO CONGRESS REGARDING ASSISTANCE.

Section 634A of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-1) (relating to reprogramming notifications) shall apply with respect to obligations of funds made available to carry out this Act.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

(a) AUTHORIZATION OF APPROPRIATIONS- In addition to funds otherwise available for such purpose and for the countries to which this Act applies, there are authorized to be appropriated to the Department of State to carry out the provisions of this Act, $1,000,000,000 for each of the fiscal years 2005 through 2009.

(b) AVAILABILITY OF FUNDS- Amounts appropriated pursuant to subsection (a) shall remain available until expended.

END