Legislation on Foreign Relations Through ...

Terrorism Prevention Act of 2004; S. 2845], 118 Stat. 3638, approved December 17, 2005; and Public Law 108-484 [Microenterprise Results and Accountability Act of 2004; H.R. 3818], 118 Stat. 3922, approved December 23, 2004

AN ACT To promote the foreign policy, security, and general welfare of the United States by assisting peoples of the world in their efforts toward economic development and internal and external security, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "The Foreign Assistance Act of 1961." 1

PART I

Chapter 1-Policy; Development Assistance Authorizations 2 Sec. 101.3 General Policy.-(a) The Congress finds that fundamental political, economic, and technological changes have resulted in the interdependence of nations. The Congress declares that the Individual liberties, economic prosperity, and security of the people of the United States are best sustained and enhanced in a community of nations which respect individual civil and economic rights and freedoms and which work together to use wisely the world's limited resources in an open and equitable international economic system. Furthermore, the Congress reaffirms the traditional humanitarian ideals of the American people and renews its commitment to assist people in developing countries to eliminate hunger, poverty, illness, and ignorance.

Therefore, the Congress declares that a principal objective of the foreign policy of the United States is the encouragement and sustained support of the people of developing countries in their efforts to acquire the knowledge and resources essential to development and to build the economic, political, and social institutions which will improve the quality of their lives.

United States development cooperation policy should emphasize Eve1 principal goals:

(1) the alleviation of the worst physical manifestations of poverty among the world's poor majority;

(2) the promotion of conditions enabling developing countries to achieve self-sustaining economic growth with equitable distribution of benefits;

(3) the encouragement of development processes in which individual civil and economic rights are respected and enhanced; 5

Sec. 111 of the Foreign Assistance and Related Agencies Appropriation Act, 1962 (Public Law -29 75 Stat. 719) added the short title.

Sec. 101(a) of the FA Act of 1963 struck out the words "Short Title_and" in the chapter ng, which formerly read "Short Title and Policy". Sec. 2(1) of the FA Act of 1973 added kwing words to the chapter heading: "Development Assistance Authorizations". USC 2151. Sec. 101 was added by sec. 101 of the International Development and Food Astance Act of 1978 (92 Stat. 937). Previously, sec. 101 had related to the short title before repealed by the FA Act of 1963. This general policy statement was formerly contained in 102 before 1978.

203 ax1) of the International Anti-Corruption and Good Governance Act of 2000 (title Ir Public Law 106-309; 114 Stat. 1091) struck out "four" and inserted in lieu thereof "five". 203(a) of the International Anti-Corruption and Good Governance Act of 2000 (title II Pur Law 106-309; 114 Stat. 1091) struck out "and" at the end of para. (3), replaced a pemat at the end of para. (4) with "; and", and added a new para. (5).

(4) the integration of the developing countries into an open and equitable international economic system; and

(5)5 the promotion of good governance through combating corruption and improving transparency and accountability. The Congress declares that pursuit of these goals requires that development concerns be fully reflected in United States foreign policy and that United States development resources be effectively and efficiently utilized.

(b)6 Under the policy guidance of the Secretary of State, the agency primarily responsible for administering this part should have the responsibility for coordinating all United States development-related activities.

Sec. 102.7 Development Assistance Policy.-(a) The Congress finds that the efforts of developing countries to build and maintain the social and economic institutions necessary to achieve self-sustaining growth and to provide opportunities to improve the quality of life for their people depend primarily upon successfully marshalling their own economic and human resources. The Congress recognizes that the magnitude of these efforts exceeds the resources of developing countries and therefore accepts that there will be a long-term need for wealthy countries to contribute additional resources for development purposes. The United States should take the lead in concert with other nations to mobilize such resources from public and private sources.

Provision of development resources must be adapted to the needs and capabilities of specific developing countries. Ünited States assistance to countries with low per capita incomes which have limited access to private external resources should primarily be provided on concessional terms. Assistance to other developing countries should generally consist of programs which facilitate their access to private capital markets, investment, and technical skills, whether directly through guarantee or reimbursable programs by

6 The responsibilities of the Agency mentioned in this subsection were transferred to the Director of IDCA, pursuant to sec. 6 of Reorganization Plan No. 2 of 1979 (establishing IDCA). The responsibilities of the Secretary of State, insofar as they relate to policy guidance other than foreign policy guidance, were also transferred to the Director. Subsequently, the Reorganization Plan No. 2 of 1979 ceased to be effective with enactment of the Foreign Affairs Reform and Restructuring Act of 1998, pursuant to sec. 1422(a)(1) (division G of Public Law 105-277; 112 Stat. 2681).

Sec. 1413 of the Foreign Affairs Reform and Restructuring Act of 1998 (22 U.S.C. 6563; 112 Stat. 2681-791), furthermore, provided the following:

"SEC. 1413. STATUS OF AID.

"(a) IN GENERAL. -Unless abolished pursuant to the reorganization plan submitted under section 1601, and except as provided in section 1412, there is within the Executive branch of Government the United States Agency for International Development as an entity described in section 104 of title 5, United States Code.

"(b) RETENTION OF OFFICERS.-Nothing in this section shall require the reappointment of any officer of the United States serving in the Agency for International Development of the United States International Development cooperation Agency as of the day before the effective date of this title.".

Sec. 1522 of that Act (22 U.S.C. 6592; 112 Stat. 2681-794), furthermore, provided the following:

"SEC. 1522. ADMINISTRATOR OF AID REPORTING TO THE SECRETARY OF STATE.

"The Administrator of the Agency for International Development, appointed pursuant to section 624(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2384(a)), shall report to and be under the direct authority and foreign policy guidance of the Secretary of State.".

722 U.S.C. 2151-1. Sec. 101 of the International Development and Food Assistance Act of 1978 (92 Stat. 927) struck out sec. 102, which concerned a statement of policy, and added a new sec. 102.

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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as "The Foreign Assistance Act of 1961." 1

PART I

Chapter 1-Policy; Development Assistance Authorizations 2 Sec. 101.3 General Policy.-(a) The Congress finds that fundamental political, economic, and technological changes have resulted in the interdependence of nations. The Congress declares that the individual liberties, economic prosperity, and security of the people of the United States are best sustained and enhanced in a community of nations which respect individual civil and economic rights and freedoms and which work together to use wisely the world's limited resources in an open and equitable international economic system. Furthermore, the Congress reaffirms the traditional humanitarian ideals of the American people and renews its commitment to assist people in developing countries to eliminate hunger, poverty, illness, and ignorance.

United States development cooperation policy should emphasize five principal goals:

(1) the alleviation of the worst physical manifestations of poverty among the world's poor majority;

(2) the promotion of conditions enabling developing countries to achieve self-sustaining economic growth with equitable distribution of benefits;

(3) the encouragement of development processes in which individual civil and economic rights are respected and enhanced; 5

Sec. 111 of the Foreign Assistance and Related Agencies Appropriation Act, 1962 (Public Law 87-329, 75 Stat. 719) added the short title.

Sec. 101(a) of the FA Act of 1963 struck out the words "Short Title and" in the chapter heading, which formerly read "Short Title and Policy". Sec. 2(1) of the FA Act of 1973 added the following words to the chapter heading: "Development Assistance Authorizations".

*22 U.S.Č. 2151. Sec. 101 was added by sec. 101 of the International Development and Food Assistance Act of 1978 (92 Stat. 937). Previously, sec. 101 had related to the short title before being repealed by the FA Act of 1963. This general policy statement was formerly contained in sec 102 before 1978.

*Sec. 203(aX1) of the International Anti-Corruption and Good Governance Act of 2000 (title II of Public Law 106-309; 114 Stat. 1091) struck out "four" and inserted in lieu thereof "five". See 203(a) of the International Anti-Corruption and Good Governance Act of 2000 (title II of Public Law 106-309; 114 Stat. 1091) struck out "and" at the end of para. (3), replaced a pered at the end of para. (4) with “; and", and added a new para. (5).

(4) the integration of the developing countries into an open and equitable international economic system; and

(b) 6 Under the policy guidance of the Secretary of State, the agency primarily responsible for administering this part should have the responsibility for coordinating all United States development-related activities.

Provision of development resources must be adapted to the needs and capabilities of specific developing countries. United States assistance to countries with low per capita incomes which have limited access to private external resources should primarily be provided on concessional terms. Assistance to other developing countries should generally consist of programs which facilitate their access to private capital markets, investment, and technical skills, whether directly through guarantee or reimbursable programs by

Sec. 1413 of the Foreign Affairs Reform and Restructuring Act of 1998 (22 U.S.C. 6563; 112 Stat. 2681-791), furthermore, provided the following:

"SEC. 1413. STATUS OF AID.

"(a) IN GENERAL.-Unless abolished pursuant to the reorganization plan submitted under section 1601, and except as provided in section 1412, there is within the Executive branch of Government the United States Agency for International Development as an entity described in section 104 of title 5, United States Code.

Sec. 1522 of that Act (22 U.S.C. 6592; 112 Stat. 2681-794), furthermore, provided the following:

"SEC. 1522. ADMINISTRATOR OF AID REPORTING TO THE SECRETARY OF STATE.

722 U.S.C. 2151-1. Sec. 101 of the International Development and Food Assistance Act of 1978 (92 Stat. 927) struck out sec. 102, which concerned a statement of policy, and added a new sec. 102.

the United States Government or indirectly through callable capital provided to the international financial institutions.

Bilateral assistance and United States participation in multilateral institutions shall emphasize programs in support of countries which pursue development strategies designed to meet basic human needs and achieve self-sustaining growth with equity.

The Congress declares that the principal purpose of United States bilateral development assistance is to help the poor majority of people in developing countries to participate in a process of equitable growth through productive work and to influence decisions that shape their lives, with the goal of increasing their incomes and their access to public services which will enable them to satisfy their basic needs and lead lives of decency, dignity, and hope. Activities shall be emphasized that effectively involve the poor in development by expanding their access to the economy through services and institutions at the local level, increasing their participation in the making of decisions that affect their lives, increasing labor-intensive production and the use of appropriate technology, expanding productive investment and services out from major cities to small towns and rural areas, and otherwise providing opportunities for the poor to improve their lives through their own efforts. Participation of the United States in multilateral institutions shall also place appropriate emphasis on these principles.

(b) Assistance under this chapter should be used not only for the purpose of transferring financial resources to developing countries, but also to help countries solve development problems in accordance with a strategy that aims to insure wide participation of the poor in the benefits of development on a sustained basis. Moreover, assistance shall be provided in a prompt and effective manner, using appropriate United States institutions for carrying out this strategy. In order to achieve these objectives and the broad objectives set forth in section 101 and in subsection (a) of this section, bilateral development assistance authorized by this Act shall be carried out in accordance with the following principles:

(1) Development is primarily the responsibility of the people of the developing countries themselves. Assistance from the United States shall be used in support of, rather than substitution for, the self-help efforts that are essential to successful development programs and shall be concentrated in those countries that take positive steps to help themselves. Maximum effort shall be made, in the administration of this part, to stimulate the involvement of the people in the development process through the encouragement of democratic participation in private and local governmental activities and institution building appropriate to the requirements of the recipient coun

tries.

(2) Development planning must be the responsibility of each sovereign country. United States assistance should be administered in a collaborative style to support the development goals chosen by each country receiving assistance.

(3) United States bilateral development assistance should give high priority to undertakings submitted by host governments which directly improve the lives of the poorest of their people and their capacity to participate in the development of

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