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BENEFITS FOR AFRICAN BUSINESSES, COMMUNITIES AND WORKERS
H.R. 434 contains no conditions that African citizens or businesses benefit from the market access provisions:
It doesn't require companies to employ citizens of sub-Saharan nations. Already, Asian workers are being imported into several African countries--where significant unemployment already exists among Africans--to work at Asian-owned factories.
It doesn't require investment or creation of jobs in sub-Sahara Africa. Rather, the weak transshipment rules allow goods to be shipped through Africa.
It applies a mere 20% value-added requirement for the GSP program to SSA--lower than any other eligible region. This reduces the likelihood of significant employment gains under the bill.
H.R. 772, HOPE for Africa ai ms to raise living standards and foster capital accumulation in Africa. T o this end, the bill provides and requires:
Additional trade benefits for companies with 51% African equity participation.
60% African value-added for goods to obtain the duty-free, quota-free market access guaranteed by the bill.
Companies benefiting from the trade preferences employ 90% African workers.
DEBT RELIEF
H.R. 434 provides no debt relief whatsoever--despite the fact that Africa's crush ing $230 billion debt burden is a massive obstacle to economic and social progress.
HOPE for Africa provi des for comprehensive debt cancellation. With upwards of 20% of sub-Saharan nations' GDP going to debt service, few resources are devoted to economic development and urgent local needs.
African debts have been repaid many times over, but the vicious cycle of taking out new loans to pay the excessive compound interest on the old loans ensures that its debt will never be ``officially'' satisfied.
HOPE for Africa calls for full cancellation of African foreign debt, starting with the relatively small debt owed to the U.S. government and covering IMF, World Bank and private sector loans. By eliminating the principle--whose market value is less than a single year's interest payments--HOPE will remove the burden of servicing the debt.
During the period of debt cancellation, HOPE for Africa caps d ebt payments so that no African country is forced to pay an amount exceeding 5 percent of its annual export earnings toward the servicing of foreign loans (the same percentage countries paid under the Marshall Plan).
SUSTAINABLE DEVELOPMENT ASSISTANCE
H.R. 434 fails to even restore the budget line item for Africa aid el iminated in 1996--even though U.S. assistance is at a historical low of .02% of U.S. GNP and sub-Sahara Africa is now the only region of the world with no guaranteed American aid.
H.R. 772, HOPE for Africa restore s aid to Africa and ens ures it is used to benefit the majority of SSA people.
Restores annual aid guarantee at the 1994 level ($802
million) under the Development Fund for Africa.
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BUSINESS FACILITATION
H.R. 434's business facilitation measures are not actually targeted to SSA businesses.
Targets $500 million in existing OPIC funds for projects in sub-Sahara Africa, but do es not target African businesses as beneficiaries, nor does it require that such funds be dispensed in consultation with African civil society.
Provides no safeguards to ensure that any financing will be used to benefit African nations and African economic development instead of U.S. corporations, that for instance, are seeking government backing of investment they were planning to undertake anyway.
H.R. 772, HOPE for Africa, target s investment financing for desperately needed infrastructure projects to small, women- and minority-owned businesses with majority African ownership, ensuring that the projects are undertaken in an environmentally responsible manner.
It targets $500 million in OPIC funds for infrastructure projects in SSA, including schools, hospitals, sanitation, potable water and accessible transportation.
It allocates 70% of the OPIC funding to small, women- and minority-owned businesses with at least 60% African ownership and $1 million or less in assets.
[Page: H5713] GPO's PDF
It targets 50% of OPIC funds used for energy projects to renewable or alternative energy.
It requires environmental impact assessments to be conducted and made public wherever relevant.
It creates advisory boards to oversee new OPIC funds (section 501) and Ex-Im Bank financing in SSA (section 502). These boards will have private sector experts in human rights, labor rights, the environment and development. Board meetings will be public.
THE AIDS CRISIS
&
H.R. 772, HOPE for Africa addresses the AIDS crisis by:
replenishing aid and newly targeting assistance from the Development Fund for Africa, specifica lly to AIDS education, prevention and treatment programs.
making it U.S. policy to help sub-Saharan African countries make needed pharmaceuticals widely available.
prohibiting the use of U.S. funds to undermine WTO TRIPS-legal African intellectual property and competition policies designed to increase the availability of medications.
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Amendment to H.R. 434, AS REPORTED OFFERED BY MR. JACKSON OF ILLINOIS
Page 69, strike line 9 and all that follows through line 18 on page 70 and insert the following:
SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.
(a) INITIATION OF FUNDS.--The Overseas Private Investment Corporation shall, not later than 12 months after the date of the enactment of this Act, exercise the authorities it has to initiate 1 or more equity funds in support of projects in the countries in sub-Saharan Africa, in additi on to any existing equity fund for sub-Saharan Africa establishe d by the Corporation before the date of the enactment of this Act.
(b) STRUCTURE AND TYPES OF FUNDS.--
(1) STRUCTURE.--Each fund initiated under subsection (a) shall be structured as a partnership managed by professional private sector fund managers and monitored on a continuing basis by the Corporation.
(2) CAPITALIZATION.--Each fund shall be capitalized with a combination of private equity capital, which is not guaranteed by the Corporation, and debt for which the Corporation provides guaranties.
(3) TYPES OF FUNDS.--One or more of the funds, with combined assets of up to $500,000,000, shall be used in support of infrastructure projects in countries of sub-Saharan Africa, including basic health services (including AIDS prevention and treatment), including hospitals, potable water, sanitation, schools, electrification of rural areas, and publicly-accessible transportation in sub-Saharan African countries.
(c) ADDITIONAL REQUIREMENTS.--The Corporation shall ensure that--
(1) not less than 70 percent of trade financing and investment insurance provided through the equity funds established under subsection (a), and through any existing equity fund for sub-Saharan Africa establishe d by the Corporation before the date of the enactment of this Act, are allocated to small, women- and minority-owned businesses--
(A) of which not less than 60 percent of the ownership is comprised of citizens of sub-Saharan African countries and 40 percent of the ownership is comprised of citizens of the United States; and
(B) that have assets of not more than $1,000,000; and
(2) not less than 50 percent of the funds allocated to energy projects are used for renewal or alternative energy projects.
Page 70, strike line 19 and all that follows through line 20 on page 73 and insert the following:
SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT BANK INITIATIVES.
(a) OVERSEAS PRIVATE INVESTMENT CORPORATION.--Section 233 of the Foreign Assistance Act of 1961 is amended by adding at the end the following:
``(e) ADVISORY COMMITTEE.--
``(1) ESTABLISHMENT.--The Board shall establish and work with an advisory committee to assist the Board in developing and implementing policies, programs, and financial instruments with respect to sub-Saharan Africa, including with respect to equity and infrastructure funds established under section 11 of the African Growth and Opportunity Act.
``(2) MEMBERSHIP.--
``(A) IN GENERAL.--The advisory committee established under paragraph (1) shall consist of 15 members, of which 7 members shall be employees of the United States Government and 8 members shall be representatives of the private sector.
``(B) APPOINTMENT.--The members of the advisory committee shall be appointed as follows:
``(i) The Speaker and Minority Leader of the House of Representatives and the Majority and Minority Leaders of the Senate shall each appoint 2 members who are representatives of the private sector and 1 member who is an employee of the United States Government.
``(ii) The Speaker and Minority Leader of the House of Representatives and the Majority and Minority Leaders of the Senate shall jointly appoint the remaining 3 members who are employees of the United States Government.
``(C) ADDITIONAL REQUIREMENTS.--Of the 8 members of advisory committee who are representatives of the private sector--
``(i) at least 4 members shall be representatives of not-for-profit public interest organizations;
``(ii) at least 1 member shall be a representative of an organization with expertise in development issues;
``(iii) at least 1 member shall be a representative of an organization with expertise in human rights issues;
``(iv) at least 1 member shall be a representative of an organization with expertise in environmental issues; and
``(v) at least 1 member shall be a representative of an organization with expertise in international labor rights.
``(D) TERMS.--Each member of the advisory committee shall be appointed for a term of 2 years.
``(3) MEETINGS.--
``(A) OPEN TO PUBLIC.--Meetings of the advisory committee shall be open to the public.
``(B) ADVANCE NOTICE.--The advisory committee shall provide advance notice in the Federal Register of any meeting of the committee, shall provide notice of all proposals or projects to be considered by the committee at the meeting, and shall solicit written comments from the public relating to such proposals or projects.
``(C) DECISIONS.--Any decision of the advisory committee relating to a proposal or project shall be published in the Federal Register with an explanation of the extent to which the committee considered public comments received with respect to the proposal or project, if any.
``(4) ENVIRONMENTAL IMPACT ASSESSMENTS.--The Corporation shall carry out environmental impact assessments with respect to any proposal or project not later than 120 days before the advisory committee, or the Board, considers such proposal or project, whichever occurs earlier.''.
(b) EXPORT-IMPORT BANK INITIATIVE.--Section 2(b)(9) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(9)) is amended to read as follows:
``(9) For purposes of the funds allocated by the Bank for projects in countries in sub-Saharan Africa (as define d in section 17 of the African Growth and Opportunity Act):
``(A) The Bank shall establish an advisory committee to work with and assist the Board in developing and implementing policies, programs, and financial instruments with respect to such countries.
``(B) The members of the advisory committee shall be appointed as follows:
``(i) The Speaker and Minority Leader of the House of Representatives and the Majority and Minority Leaders of the Senate shall each appoint 2 members who are representatives of the private sector and 1 member who is an officer or employee of the Federal Government.
``(ii) The Speaker and Minority Leader of the House of Representatives and the Majority and Minority Leaders of the Senate shall jointly appoint the remaining 3 members who are officers or employees of the Federal Government.
``(C)(i) At least half of the members of the advisory committee who are representatives of the private sector shall be representatives of not-for-profit public interest organizations.
``(ii) At least 1 of such private sector representatives shall be a representative of an organization with expertise in development issues.
``(iii) At least 1 of such private sector representatives shall be a representative of an organization with expertise in human rights.
``(iv) At least 1 of such private sector representatives shall be a representative of an organization with expertise in environmental issues.
``(v) At least 1 of such private sector representatives shall have expertise in international labor rights.
``(D) Each member of the advisory committee shall serve for a term of 2 years.
``(E)(i) Members of the advisory committee who are representatives of the private sector shall not receive compensation by reason of their service on the advisory committee.
``(ii) Members of the advisory committee who are officers or employees of the Federal Government may not receive additional pay, allowances, or benefits by reason of their service on the advisory committee.
``(F) Meetings of the advisory committee shall be open to the public.
``(G) The advisory committee shall give timely advance notice of each meeting of the advisory committee, including a description of any matters to be considered at the meeting, shall establish a public docket, shall solicit written comments in advance on each proposal, and shall make each decision in writing with an explanation of disposition of the public comments.
``(H) The Bank shall complete and release to the public an environmental impact assessment with respect to a proposal or project with potential environmental effects, not later than 120 days before the advisory committee, or the Board, considers the proposal or project, whichever occurs earlier.
``(I) Section 14(a)(2) of the Federal Advisory Committee Act shall not apply to the advisory committee.''.
[Page: H5714] GPO's PDF
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Amendment to H.R. 2415
Offered by Mr. Jackson of Illinois
Page 84, after line 16, add the following (and conform the table of contents accordingly):
SEC. 801. INTELLECTUAL PROPERTY OR COMPETITION LAW RELATING TO PHARMACEUTICALS OR OTHER MEDICAL TECHNOLOGIES.
No funds appropriated or otherwise made available to the Department of State may be used to seek, through negotiation or otherwise, the revocation or revision of any intellectual property or competition law or policy of a sub-Saharan African country that is designed to promote access to pharmaceuticals or other medical technologies if such law or policy, as the case may be, complies with the Agreement on Trade-Related Aspects of Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)).
--
Amendment to H.R. 434, AS REPORTED
Offered by Mr. Jackson of Illinois
Page 92, after line 17, add the following:
SEC. 20. AUTHORIZATION OF APPROPRIATIONS FOR DEVELOPMENT
FUND FOR AFRICA.
&nb
(b) ADDITIONAL REQUIREMENT.--Amounts appropriated under the Foreign Operations, Export Financing, and Related Programs Appropriations Act pursuant to the authorization of appropriations established under the first sentence of section 497 of the Foreign Assistance Act of 1961 (22 U.S.C. 2294), as added by subsection (a), shall be appropriated to a separate account under the heading ``Development Fund for Africa'' and not to the account under the heading ``Development Assistance''.
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Amendment to H.R. 434, AS REPORTED
Offered by Mr. Jackson of Illinois
Page 41, after line 16, insert the following:
Page 41, line 17, strike ``
Page 92, after line 17, add the following:
SEC. 201. DECLARATIONS OF POLICY.
The Congress makes the following declarations:
(1)(A) For the majority of people in sub-Saharan Africa to be able to benefit from new trade, investment, and other economic opportunities provided by this Act, and amendments made by this Act, the pre-existing burden of external debt of sub-Saharan African countries must be eliminated.
(B) This fresh start will allow operation of local credit markets and eliminate distortions currently hindering development in sub-Saharan Africa.
& nbsp; (2) The cancellation of debt provisions contained in this title, and amendments made by this title, shall serve to help establish a more level playing field on which sub-Saharan African countries may move forward under the provisions of this Act.
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