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 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 (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 their countries, while also helping such governments enhance their planning, technical, and administrative capabilities needed to insure the success of such undertakings. (4) Development assistance provided under this chapter shall be concentrated in countries which will make the most effective use of such assistance to help satisfy basic human needs of poor people through equitable growth, especially in those countries having the greatest need for outside assistance. In order to make possible consistent and informed judgments in this respect, the President shall assess the commitment and progress of countries in moving toward the objectives and purposes of this chapter by utilizing criteria, including but not limited to the following: (A) increase in agricultural productivity per unit of land through small-farm, labor-intensive agriculture; (B) reduction of infant mortality; (C) control of population growth; (D) promotion of greater equality of income distribution, including measures such as more progressive taxation and more equitable returns to small farmers; (E) reduction of rates of unemployment and underemployment; 8 (F) increase in literacy; and (G)8 progress in combating corruption and improving transparency and accountability in the public and private sector. (5) United States development assistance should focus on critical problems in those functional sectors which affect the lives of the majority of the people in the developing countries; food production and nutrition; rural development and generation of gainful employment; population planning and health; environment and natural resources; education, development administration, and human resources development; and energy development and production.9 (6) United States assistance shall encourage and promote the participation of women in the national economies of developing countries and the improvement of women's status as an important means of promoting the total development effort. (7) United States bilateral assistance shall recognize that the prosperity of developing countries and effective development efforts require the adoption of an overall strategy that promotes "Sec. 203(b)(1) of the International Anti-Corruption and Good Governance Act of 2000 (title II of Public Law 106-309; 114 Stat. 1092) struck out "and" at the end of subpara. (E), replaced a period at the end of subpara. (F) with "; and", and added a new subpara. (G). "Sec. 104(a) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat 360) added the reference to energy development and production. the development, production,9 and efficient utilization of energy and, therefore, consideration shall be given to the full implications of such assistance on the price, availability, and consumption of energy in recipient countries. (8) United States cooperation in development should be carried out to the maximum extent possible through the private sector, including those institutions which already have ties in the developing areas, such as educational institutions, cooperatives, credit unions, free labor unions, and private and voluntary agencies. (9) To the maximum extent practicable, United States private investment should be encouraged in economic and social development programs to which the United States lends support. (10) Assistance shall be planned and utilized to encourage regional cooperation by developing countries in the solution of common problems and the development of shared resources. (11) Assistance efforts of the United States shall be planned and furnished to the maximum extent practicable in coordination and cooperation with assistance efforts of other countries, including the planning and implementation of programs and projects on a multilateral and multidonor basis. (12) United States bilateral development assistance should be concentrated on projects which do not involve large-scale capital transfers. However, to the extent that such assistance does involve large-scale capital transfers, it should be furnished in association with contributions from other countries working together in a multilateral framework. (13) 10 United States encouragement of policy reforms is necessary if developing countries are to achieve economic growth with equity. (14) 10 Development assistance should, as a fundamental objective, promote private sector activity in open and competitive markets in developing countries, recognizing such activity to be a productive and efficient means of achieving equitable and long-term economic growth. (15) 10 United States cooperation in development should recognize as essential the need of developing countries to have access to appropriate technology in order to improve food and water, health and housing, education and employment, and agriculture and industry. (16) 10 United States assistance should focus on establishing and upgrading the institutional capacities of developing countries in order to promote long-term development. An important component of institution building involves training to expand the human resource potential of people in developing countries. (17) 11 Economic reform and development of effective institutions of democratic governance are mutually reinforcing. The successful transition of a developing country is dependent upon the quality of its economic and governance institutions. Rule of 10 Sec. 301 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190) added paras. (13), (14), (15), and (16). 11 Sec. 203(b)(2) of the International Anti-Corruption and Good Governance Act of 2000 (title II of Public Law 106-309; 114 Stat. 1092) added para. (17). k. Emergency Supplemental Act, 2000 (Public Law 106-246) (partial text) 1070 1. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (Public Law 106-113) (partial text) 1079 m. Miscellaneous Appropriations, 2000 (Public Law 106–113) (partial text) 1088 n. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (Public Law 105-277) (partial text) o. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997 (Public Law 104-208) (partial text) p. Mexican Debt Disclosure Act of 1995 Public Law 104-6) (partial text) q. Foreign Operations, Export Financing, and Related Programs Supple- s. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513) (partial text) t. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101-167) (partial text) 1093 1101 1108 1112 1114 1118 1129 u. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-460) (partial text) 1144 v. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (Public Law 100-202) (partial text) 1146 w. Foreign Assistance and Related Programs Appropriations Act, 1984 1151 1153 NOTE. Volume I is printed in two parts, I-A and I-B, effective 1994. Volume I-B contains legislation and Executive orders relating to other foreign assistance matters, the Armed Forces, agricultural commodities, and the Peace Corps. 1. Foreign Assistance and Arms Export Acts * a. The Foreign Assistance Act of 1961, as Amended Public Law 87-195 [S. 1983], 75 Stat. 424, approved September 4, 1961, as amended by Public Law 87-329 [Foreign Assistance and Related Agencies Appropriation Act, 1962; H.R. 9033], 75 Stat. 717, approved September 30, 1961; Public Law 87-565 [Foreign Assistance Act of 1962, S. 2996], 76 Stat. 255, approved August 1, 1962; Public Law 87-793 [Postal Service and Federal Employees Salary Act of 1962, H.R. 7927], 76 Stat. 832, approved October 11, 1962; Public Law 88–205 [H.R. 7885], 77 Stat. 379, approved December 16, 1963; Public Law 88-426 [Government Employees Salary Reform Act of 1964, H.R. 11049], 78 Stat. 400, approved August 14, 1964; Public Law 88-448 [Dual Compensation Act, H.R. 7381], 78 Stat. 484, approved August 19, 1964; Public Law 88-633 [H.R. 11380], 78 Stat. 1009, approved October 7, 1964; Public Law 88-638 [Amendments to Agricultural Trade Development and Assistance Act of 1954, as amended; S. 2687], 78 Stat. 1035, approved October 8, 1964; Public Law 89-171 [Foreign Assistance Act of 1965; H.R. 7750], 79 Stat. 653, approved September 6, 1965; Public Law 89-371 [H.R. 12169], 80 Stat. 74, approved March 18, 1966; Public Law 89-583 [Foreign Assistance Act of 1966; H.R. 15750], 80 Stat. 795, approved September 19, 1966; Public Law 90-137 [Foreign Assistance Act of 1967; S. 1872], 81 Stat. 445, approved November 14, 1967; Public Law 90-554 [Foreign Assistance Act of 1968; H.R. 15263], 82 Stat. 960, approved October 8, 1968; Public Law 90-629 [Foreign Military Sales Act, H.R. 15681], 82 Stat. 1320, approved October 22, 1968; Public Law 91-175 [Foreign Assistance Act of 1969; H.R. 14580], 83 Stat. 805, approved December 30, 1969; Public Law 91-652 [Special Foreign Assistance Act of 1971, H.R. 19911], 84 Stat. 1942, approved January 5, 1971; Public Law 92-226 [Foreign Assistance Act of 1971; S. 2819], 86 Stat. 20, approved February 7, 1972; Public Law 92-352 [Foreign Relations Authorization Act of 1972, H.R. 14734], 86 Stat. 489, approved July 13, 1972; Public Law 93-189 [Foreign Assistance Act of 1973; S. 1443], 87 Stat. 714, approved December 17, 1973; Public Law 93-333 [Foreign Disaster Assistance Act of 1974, H.R. 12412], 88 Stat. 290, approved July 8, 1974; Public Law 93-390 [Overseas Private Investment Corporation Amendments Act of 1974, S. 2957], 88 Stat. 763, approved August 27, 1974; Public Law 93-559 [Foreign Assistance Act of 1974; S. 3394], 88 Stat. 1795, approved December 30, 1974; Public Law 94-104 [S. 2230], 89 Stat. 508, approved October 6, 1975; Public Law 94-161 [International Development and Food Assistance Act of 1975; H.R. 9005], 89 Stat. 849, approved December 20, 1975; Public Law 94–273 [Fiscal Year Adjustment Act; S. 2445], 90 Stat. 375, approved April 21, 1976, Public Law 94-276 [Guatemala Relief and Rehabilitation Act of 1976; S. 3056], 90 Stat. 397, approved April 21, 1976; Public Law 94-329 [International Security Assistance and Arms Export Control Act of 1976; H.R. 13680], 90 Stat. 729, approved June 30, 1976; Public Law 95-21 [Romanian Relief and Rehabilitation; H.R. 5717], 91 Stat. 48, approved April 18, 1977; Public Law 95-23 [Supplemental Military Assistance to Portugal for Fiscal Year 1977; S. 489], 91 Stat. 54, approved April 30, 1977; Public Law 95-88 [International Development and Food Assistance Act of 1977; H.R. 6714], 91 Stat. 533, approved August 3, 1977; Public Law 95-92 [International Security Assistance Act of 1977; H.R. 6884], 91 Stat. 614, approved August 4, 1977; Public Law 95-105 [Foreign Relations Authorization Act, Fiscal Year 1978; H.R. 6689], 91 Stat. 844 at 846, approved August 17, 1977; Public Law 95-268 [OPIC Amendments Act of 1978; H.R. 9179], 92 Stat. 213, approved April 24, 1978; Public Law 95-384 [International Security Assistance Act of 1978; S. 3075], 92 Stat. 730, approved September *NOTE.-The Foreign Assistance Act will be referred to as the FA Act and "this Act." |