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H.R. 2442 (eas) [Engrossed Amendment Senate] ...

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                                                 Union Calendar No. 112
  1st Session
                                H. R. 2441

                          [Report No. 108-205]

  To establish the Millennium Challenge Account to provide increased 
 support for developing countries that have fostered democracy and the 
rule of law, invested in their citizens, and promoted economic freedom; 
   to assess the impact and effectiveness of United States economic 
  assistance; to authorize the expansion of the Peace Corps, and for 
                            other purposes.



                             June 12, 2003

Mr. Hyde (for himself, Mr. Lantos, Mr. Green of Wisconsin, Ms. Harris, 
   Ms. Lee, Mr. Crowley, Mr. LaHood, and Mr. Janklow) introduced the 
 following bill; which was referred to the Committee on International 

                             July 14, 2003

  Additional sponsors: Mr. Bereuter, Mrs. McCarthy of New York, Mrs. 
  Napolitano, Mr. Shimkus, Ms. McCollum, Mr. Calvert, Mr. Platts, Mr. 
Larson of Connecticut, Mr. Schiff, Mr. Bachus, Mr. Leach, Mr. McCotter, 
Mr. English, Mr. Oxley, Mr. Whitfield, Mr. Simmons, Mr. Pickering, Mr. 
Terry, Mrs. Miller of Michigan, Mr. Smith of New Jersey, Mr. Upton, Mr. 
 King of New York, Mr. Ballenger, Mr. Thornberry, Mr. Nethercutt, Mrs. 
Wilson of New Mexico, Mr. Johnson of Illinois, Mr. Issa, Mrs. Northrup, 
Mr. Rohrabacher, Mr. Houghton, Mr. Conyers, Mr. Ackerman, Mr. Grijalva, 
    Mr. Boucher, Mr. Payne, Ms. Jackson-Lee of Texas, Mr. Wynn, Mr. 
  Tierney, Mr. Case, Mr. Farr, Mr. Moran of Virginia, Mr. Berman, Mr. 
Udall of Colorado, Mr. Frost, Ms. Woolsey, Mr. Weller, Mr. LaTourette, 
Mr. Faleomavaega, Mr. Blumenauer, Mr. Bell, Mr. Engel, Mr. Snyder, Mr. 
  Smith of Washington, Mr. Ballance, Ms. Ros-Lehtinen, Mr. Rogers of 
 Michigan, Mr. Dingell, Mr. Frank of Massachusetts, Mr. Price of North 
                   Carolina, Mrs. Bono, and Mr. Royce

                             July 14, 2003

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on June 
                               12, 2003]


                                 A BILL

  To establish the Millennium Challenge Account to provide increased 
 support for developing countries that have fostered democracy and the 
rule of law, invested in their citizens, and promoted economic freedom; 
   to assess the impact and effectiveness of United States economic 
  assistance; to authorize the expansion of the Peace Corps, and for 
                            other purposes.

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


    (a) Short Title.--This Act may be cited as the ``Millennium 
Challenge Account Authorization and Peace Corps Expansion Act of 
    (b) Table of Contents.--The table of contents for this Act is as 

Sec. 1. Short title; table of contents.


                      TITLE I--GENERAL PROVISIONS

Sec. 101. Definitions.
Sec. 102. Sunset.


Sec. 201. Findings; statement of policy.
Sec. 202. Authorization of assistance.
Sec. 203. Eligibility and related requirements.
Sec. 204. Millennium Challenge Compact.
Sec. 205. Suspension and termination of assistance.
Sec. 206. Annual report.
Sec. 207. Participation of certain United States businesses.
Sec. 208. Authorization of appropriations; related authorities.


Sec. 301. Millennium Challenge Corporation.
Sec. 302. Chief Executive Officer.
Sec. 303. Board of Directors.
Sec. 304. Interagency coordination.
Sec. 305. Powers of the Corporation; related provisions.
Sec. 306. Transparency and accountability of the Corporation.
Sec. 307. Detail of personnel to the Corporation; other authorities and 
Sec. 308. Millennium Challenge Advisory Council.
Sec. 309. Millennium Challenge seed grants.


Sec. 401. Definition.
Sec. 402. Framework for assistance.
Sec. 403. Report relating to impact and effectiveness of assistance.


                      TITLE X--GENERAL PROVISIONS

Sec. 1001. Definitions.
Sec. 1002. Findings.


Sec. 1101. Advancing the goals of the Peace Corps.
Sec. 1102. Reports and consultations.
Sec. 1103. Special volunteer recruitment and placement for certain 
Sec. 1104. Global Infectious Diseases Initiative; coordination of HIV/
                            AIDS activities.
Sec. 1105. Peace Corps National Advisory Council.
Sec. 1106. Readjustment allowances.
Sec. 1107. Programs and projects of returned Peace Corps volunteers and 
                            former staff.
Sec. 1108. Declaration of policy.
Sec. 1109. Peace Corps in Sierra Leone.
Sec. 1110. Authorization of appropriations.


                      TITLE I--GENERAL PROVISIONS


    In this division:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on International Relations and 
                the Committee on Appropriations of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            (2) Board.--The term ``Board'' means the Board of Directors 
        of the Corporation established pursuant to section 303 of this 
            (3) Compact.--The term ``Compact'' means the Millennium 
        Challenge Compact described in section 204 of this Act.
            (4) Corporation.--The term ``Corporation'' means the 
        Millennium Challenge Corporation established under section 301 
        of this Act.
            (5) Council.--The term ``Council'' means the Millennium 
        Challenge Advisory Council established under section 308 of 
        this Act.
            (6) Millennium development goals.--The term ``Millennium 
        Development Goals'' means the key objectives described in the 
        United Nations Millennium Declaration, as contained in United 
        Nations General Assembly Resolution 55/2 (September 2000), 
        which aim to eradicate extreme poverty and hunger, achieve 
        universal primary education, promote gender equality and 
        empower women, reduce child mortality, improve maternal health, 
        combat HIV/AIDS, malaria, and other infectious diseases, ensure 
        environmental sustainability, and develop a global partnership 
        for development.


    All authorities under this division (other than title IV) shall 
terminate on October 1, 2007.



    (a) Findings.--Congress finds the following:
            (1) A principal objective of United States foreign 
        assistance programs, as stated in section 101 of the Foreign 
        Assistance Act of 1961, 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''.
            (2) The expanding acceptance of free trade and open markets 
        and the spread of democracy and the rule of law have brought a 
        better way of life to an increasing number of people in the 
            (3) Inequalities between men and women undermine 
        development and poverty-reduction efforts in fundamental ways. 
        A woman's limited access to resources and restrictions on the 
        exercise of her rights, including the right to participate in 
        social and political processes, disables her from maximizing 
        her contribution to her family's health, education, and general 
            (4) On March 14, 2002, the President noted the successes of 
        development assistance programs: ``The advances of free markets 
        and trade and democracy and rule of law have brought prosperity 
        to an ever-widening circle of people in this world. During our 
        lifetime, per capita income in the poorest countries has nearly 
        doubled. Illiteracy has been cut by one-third, giving more 
        children a chance to learn. Infant mortality has been almost 
        halved, giving more children a chance to live.''.
            (5) Development is neither an easy process nor a linear 
        one. There are successes and there are failures. Today, too 
        many people are still living in poverty, disease has eroded 
        many of the economic and social gains of previous decades, and 
        many countries have not adopted policies, for a variety of 
        reasons, that would enable them to compete in an open and 
        equitable international economic system.
            (6) More countries and more people will be able to 
        participate in and benefit from the opportunities afforded by 
        the global economy if the following conditions for sound and 
        sustainable economic development are met:
                    (A) Security.--Security is necessary for economic 
                development. Persistent poverty and oppression can lead 
                to hopelessness, despair, and to failed states that 
                become havens for terrorists.
                    (B) Policies that support broad-based economic 
                growth.--Successful long-term development can only 
                occur through broad-based economic growth that enables 
                the poor to increase their incomes and have access to 
                productive resources and services so that they can lead 
                lives of decency, dignity, and hope.
                    (C) Democracy and the rule of law.--Democratic 
                development, political pluralism, and respect for 
                internationally recognized human rights are 
                intrinsically linked to economic and social progress. 
                The ability of people to participate in the economic 
                and political processes affecting their lives is 
                essential to sustained growth. The rule of law and a 
                commitment to fight corruption is also critical to the 
                development of a prosperous society.
                    (D) Investments in people.--Economic growth and 
                democracy can be sustained only if both men and women 
                have the basic tools and capabilities that foster the 
                opportunity for participation in the economic, social, 
                and political life of their countries. Successful 
                development of countries requires citizens who are 
                literate, healthy, and prepared and able to work.
            (7) Economic assistance programs authorized under part I of 
        the Foreign Assistance Act of 1961, as administered by the 
        United States Agency for International Development and other 
        Federal agencies, are of critical importance in assisting 
        countries to be in a position to maximize the effectiveness of 
        assistance authorized by this title.
            (8) It is in the national interest of the United States to 
        help those countries that are implementing the economic and 
        political reforms necessary for development to occur.
            (9) On March 14, 2002, the President stated that the 
        ``growing divide between wealth and poverty, between 
        opportunity and misery, is both a challenge to our compassion 
        and a source of instability . . . [w]e must confront it . . . 
        [w]e must include every African, every Asian, every Latin 
        American, every Muslim, in an expanding circle of 
            (10) The President has pledged that funds requested for the 
        Millennium Challenge Account shall be in addition to, and not a 
        substitute for, existing development and humanitarian programs.
            (11) Development assistance alone is not sufficient to 
        stimulate economic growth and development. Assistance has been 
        shown to have a positive impact on growth and development in 
        developing countries with sound policies and institutions. If 
        countries have poor policies and institutions, however, it is 
        highly unlikely that assistance will have a net positive 
            (12) Economic development, and the achievement of the 
        Millennium Development Goals, must be a shared responsibility 
        between donor and recipient countries.
    (b) Statement of Policy Regarding a New Compact for Global 
Development.--It is, therefore, the policy of the United States to 
support a new compact for global development that--
            (1) increases support by donor countries to those 
        developing countries that are fostering democracy and the rule 
        of law, investing in their people, and promoting economic 
        freedom for all their people;
            (2) recognizes, however, that it is the developing 
        countries themselves that are primarily responsible for the 
        achievement of those goals;
            (3) seeks to coordinate the disparate development 
        assistance policies of donor countries, and to harmonize the 
        trade and finance policies of donor countries with their 
        respective development assistance programs; and
            (4) aims to reduce poverty by significantly increasing the 
        economic growth trajectory of beneficiary countries through 

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