6 1 throughout society and to improve transparency and ac 2 countability at all levels of government and throughout the 3 private sector. 4 SEC. 3. DEVELOPMENT ASSISTANCE POLICIES. 5 (a) GENERAL POLICY.-Section 101(a) of the For6 eign Assistance Act of 1961 (22 U.S.C. 2151(a)) is 7 amended in the fifth sentence 8 9 10 11 12 13 14 15 16 end; (1) by striking "four" and inserting "five"; (2) in paragraph (3), by striking "and" at the (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.". 17 (b) DEVELOPMENT ASSISTANCE POLICY.-Para18 graph (4) of the third sentence of section 102(b) of the 19 Foreign Assistance Act of 1961 (22 U.S.C. 2151-1(b)) 20 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: 1 2 3 7 "(G) progress in combating corruption and improving transparency and accountability in the public and private sector.". 4 SEC. 4. DEPARTMENT OF THE TREASURY TECHNICAL AS 7 COUNTRIES. Section 129(b) of the Foreign Assistance Act of 1961 8 (22 U.S.C. 2151aa(b)) is amended by adding at the end 9 the following: 10 11 12 13 14 15 16 "(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.". 17 SEC. 5. AUTHORIZATION OF GOOD GOVERNANCE PRO 19 (a) IN GENERAL.-Chapter 1 of part I of the Foreign 20 Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amend 21 ed by adding at the end the following: 22 “SEC. 131. PROGRAMS TO ENCOURAGE GOOD GOVERN. 2 2 2 2 23 ANCE. "(a) ESTABLISHMENT OF PROGRAMS. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 8 "(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 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 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 18 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 Develop 1 2 3 4 9 ment and the International Monetary Fund, and other relevant criteria. "(4) REQUIREMENT.-Assistance provided for countries under programs established pursuant to 5 paragraph (1) may be made available notwith 6 7 8 standing any other provision of law that restricts assistance to foreign countries. "(b) SPECIFIC PROJECTS AND ACTIVITIES.-The 9 programs established pursuant to subsection (a) shall in10 clude, to the extent appropriate, projects and activities 11 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; “(3) establish audit offices, inspectors general, and anti-corruption agencies; "(4) promote responsive, transparent, and accountable legislatures that ensure legislative over sight and whistle-blower protection; "(5) promote legal and judicial reforms that criminalize corruption and law enforcement reforms I 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 and development that encourage prosecutions of criminal corruption; “(6) assist in the development of a legal framework 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 information; and “(9) engage civil society in the fight against corruption. 17 "(c) CONDUCT OF PROJECTS AND ACTIVITIES.– 18 Projects and activities under the programs established 19 pursuant to subsection (a) may include, among other 20 things, training and technical assistance (including draft21 ing of anti-corruption, privatization, and competitive stat22 utory and administrative codes), drafting of anti-corrup23 tion, privatization, and competitive statutory and adminis24 trative codes, support for independent media and publica25 tions, financing of the program and operating costs of |