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

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

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) 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 developmentrelated activities.4

Sec. 102.5 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. Únited 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. Ac

'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. 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).

$22 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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voive the poor in deeconomy through servreasing their participatheir lives, increasing appropriate technology, Aces out from major cities erwise providing opportuniarough their own efforts. multilateral institutions shall se principles.

per sould be used not only for the urces to developing countries, evelopment problems in accordnsure wide participation of the

Jo a sustained basis. Moreover, a prompt and effective manner, Sass institutions for carrying out this eves objectives and the broad objecand in subsection (a) of this section, An authorized by this Act shall be as in the following principles:

...smarty the responsibility of the people s ounces themselves. Assistance from the d in support of, rather than substien-ceip efforts that are essential to successful rains and shall be concentrated in those Se sve steps to help themselves. MaxiCan be made in the administration of this part, se movement of the people in the development mat de scouragement of democratic participation e and oral governmental activities and institution a jegovprates to the requirements of the recipient coun

evelopment planning must be the responsibility of each ungd auntry. Cited States assistance should be adminis

à a collaborative style to support the development goals bussat by each country receiving assistance.

3: Cilted States bilateral development assistance should had priority to undertakings submitted by host governmes which directly improve the lives of the poorest of their core and their capacity to participate in the development of Peat countries, while also helping such governments enhance near planning, technical, and administrative capabilities needa o sure the success of such undertakings.

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 counnes 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; and

(F) increase in literacy.

(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.6

(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 the development, production,6 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 fur

*The reference to energy development and production was added by sec. 104(a) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 360).

Γ

nished in association with contributions from other countries working together in a multilateral framework.

(13) United States encouragement of policy reforms is necessary if developing countries are to achieve economic growth with equity.

(14) 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) 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) 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. (c) The Congress, recognizing the desirability of overcoming the worst aspects of absolute poverty by the end of this century by, among other measures, substantially lowering infant mortality and birth rates, and increasing life expectancy, food production, literacy, and employment, encourages the President to explore with other countries, through all appropriate channels, the feasibility of a worldwide cooperative effort to overcome the worst aspects of absolute poverty and to assure self-reliant growth in the developing countries by the year 2000.

NOTE.-Foreign assistance appropriations for fiscal year 1999 are included in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (division A, sec. 101(d) of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999; Public Law 105-277; 112 Stat. 2681). Amounts appropriated by that Act to carry out the purposes of provisions contained in the Foreign Assistance Act of 1961, during fiscal year 1999 unless otherwise specified, are included in footnotes.

Paragraphs (13), (14), (15), and (16) were added by sec. 301 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190).

NOTE.-Prior to fiscal year 1992, Congress appropriated funds for each of the Development Assistance functional accounts authorized in sections 103 through 106 of the Foreign Assistance Act of 1961. For fiscal year 1992 through fiscal year 1995, however, Congress made appropriations in one lump sum for all programs within sections 103 through 106, with the exception of "Population, Development Assistance". In fiscal year 1996, Congress made appropriations in one lump sum for Development Assistance. Since fiscal year 1997, Congress has made appropriations to two development accounts: "Development Assistance" and "Child Survival and Disease Programs Fund".

For fiscal year 1999, to remain available until September 30, 2000, for the provisions of sections 103 through 106 and chapter 10 of part I of the Foreign Assistance Act of 1961 (Development Assistance and Development Fund for Africa), title V of the International Security and Development Cooperation Act of 1980 (African Development Foundation), and section 401 of the Foreign Assistance Act of 1969 (Inter-American Foundation), Congress appropriated $1,225,000,000. Congress also appropriated $650,000,000 in fiscal year 1999, to remain available until expended, for child survival, basic education, and to combat tropical and other diseases, and related activities. Congress appropriated another $50,000,000, to remain available until expended, for an additional amount for the "Child Survival and Disease Programs Fund" in the Emergency Supplemental Appropriations for Fiscal Year 1999 (division B, title IV, chapter 3 of Public Law 105-277).

NOTE.-The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (division A, sec. 101(d) of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999; Public Law 105277; 112 Stat. 2681), provided the following:

"OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

"SEC. 501. Except for the appropriations entitled 'International Disaster Assistance', and 'United States Emergency Refugee and Migration Assistance Fund', not more than 15 percent of any appropriation item made available by this Act shall be obligated during the last month of availability.".