
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2152c]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
                 SUBCHAPTER I--INTERNATIONAL DEVELOPMENT
 
  Part I--Declaration of Policy; Development Assistance Authorizations
 
Sec. 2152c. Programs to encourage good governance


(a) Establishment of programs

                           (1) In general

        The President is authorized to establish programs that combat 
    corruption, improve transparency and accountability, and promote 
    other forms of good governance in countries described in paragraph 
    (2).

                       (2) Countries described

        A country described in this paragraph is a country that is 
    eligible to receive assistance under subchapter I of this chapter 
    (including part IV of subchapter II of this chapter) or the Support 
    for East European Democracy (SEED) Act of 1989 [22 U.S.C. 5401 et 
    seq.].

                            (3) Priority

        In carrying out paragraph (1), the President shall give priority 
    to establishing programs in countries that received a significant 
    amount of United States foreign assistance for the prior fiscal 
    year, or in which the United States has a significant economic 
    interest, and that continue to have the most persistent problems 
    with public and private corruption. In determining which countries 
    have the most persistent problems with public and private corruption 
    under the preceding sentence, the President shall take into account 
    criteria such as the Transparency International Annual Corruption 
    Perceptions Index, standards and codes set forth by the 
    International Bank for Reconstruction and Development and the 
    International Monetary Fund, and other relevant criteria.

                     (4) Relation to other laws

        (A) In general

            Assistance provided for countries under programs established 
        pursuant to paragraph (1) may be made available notwithstanding 
        any other provision of law that restricts assistance to foreign 
        countries. Assistance provided under a program established 
        pursuant to paragraph (1) for a country that would otherwise be 
        restricted from receiving such assistance but for the preceding 
        sentence may not be provided directly to the government of the 
        country.

        (B) Exception

            Subparagraph (A) does not apply with respect to--
                (i) section 2371 of this title or any comparable 
            provision of law prohibiting assistance to countries that 
            support international terrorism; or
                (ii) section 907 of the Freedom for Russia and Emerging 
            Eurasian Democracies and Open Markets Support Act of 1992.

(b) Specific projects and activities

    The programs established pursuant to subsection (a) of this section 
shall include, to the extent appropriate, projects and activities that--
        (1) support responsible independent media to promote oversight 
    of public and private institutions;
        (2) implement financial disclosure among public officials, 
    political parties, and candidates for public office, open budgeting 
    processes, and transparent financial management systems;
        (3) support the establishment of audit offices, inspectors 
    general offices, third party monitoring of government procurement 
    processes, and anti-corruption agencies;
        (4) promote responsive, transparent, and accountable 
    legislatures and local governments that ensure legislative and local 
    oversight and whistle-blower protection;
        (5) promote legal and judicial reforms that criminalize 
    corruption and law enforcement reforms and development that 
    encourage prosecutions of criminal corruption;
        (6) assist in the development of a legal framework for 
    commercial transactions that fosters business practices that promote 
    transparent, ethical, and competitive behavior in the economic 
    sector, such as commercial codes that incorporate international 
    standards and protection of intellectual property rights;
        (7) promote free and fair national, state, and local elections;
        (8) foster public participation in the legislative process and 
    public access to government information; and
        (9) engage civil society in the fight against corruption.

(c) Conduct of projects and activities

    Projects and activities under the programs established pursuant to 
subsection (a) of this section may include, among other things, training 
and technical assistance (including drafting of anti-corruption, 
privatization, and competitive statutory and administrative codes), 
drafting of anti-corruption, privatization, and competitive statutory 
and administrative codes, support for independent media and 
publications, financing of the program and operating costs of 
nongovernmental organizations that carry out such projects or 
activities, and assistance for travel of individuals to the United 
States and other countries for such projects and activities.

(d) Annual report

                           (1) In general

        The Secretary of State, in consultation with the Secretary of 
    Commerce and the Administrator of the United States Agency for 
    International Development, shall prepare and transmit to the 
    Committee on International Relations and the Committee on 
    Appropriations of the House of Representatives and the Committee on 
    Foreign Relations and the Committee on Appropriations of the Senate 
    an annual report on--
            (A) projects and activities carried out under programs 
        established under subsection (a) of this section for the prior 
        year in priority countries identified pursuant to subsection 
        (a)(3) of this section; and
            (B) projects and activities carried out under programs to 
        combat corruption, improve transparency and accountability, and 
        promote other forms of good governance established under other 
        provisions of law for the prior year in such countries.

                        (2) Required contents

        The report required by paragraph (1) shall contain the following 
    information with respect to each country described in paragraph (1):
            (A) A description of all United States Government-funded 
        programs and initiatives to combat corruption and improve 
        transparency and accountability in the country.
            (B) A description of United States diplomatic efforts to 
        combat corruption and improve transparency and accountability in 
        the country.
            (C) An analysis of major actions taken by the government of 
        the country to combat corruption and improve transparency and 
        accountability in the country.

(e) Funding

    Amounts made available to carry out the other provisions of 
subchapter I of this chapter (including part IV of subchapter II of this 
chapter) and the Support for East European Democracy (SEED) Act of 1989 
[22 U.S.C. 5401 et seq.] shall be made available to carry out this 
section.

(Pub. L. 87-195, pt. I, Sec. 133, as added Pub. L. 106-309, title II, 
Sec. 205(a), Oct. 17, 2000, 114 Stat. 1092.)

                       References in Text

    The Support for East European Democracy (SEED) Act of 1989, referred 
to in subsecs. (a)(2) and (e), is Pub. L. 101-179, Nov. 28, 1989, 103 
Stat. 1298, as amended, which is classified principally to chapter 63 
(Sec. 5401 et seq.) of this title. For complete classification of this 
Act to the Code, see Short Title note set out under section 5401 of this 
title and Tables.
    Section 907 of the Freedom for Russia and Emerging Eurasian 
Democracies and Open Markets Support Act of 1992, referred to in subsec. 
(a)(4)(B)(ii), is section 907 of Pub. L. 102-511, which is set out as a 
note under section 5812 of this title.


References to Subchapter I Deemed To Include Certain Parts of Subchapter 
                                   II

    References to subchapter I of this chapter are deemed to include 
parts IV (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 2349aa et seq.) of subchapter II of this chapter, and references 
to subchapter II are deemed to exclude such parts. See section 202(b) of 
Pub. L. 92-226, set out as a note under section 2346 of this title, and 
sections 2348c and 2349aa-5 of this title.

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.


                          Findings and Purpose

    Pub. L. 106-309, title II, Sec. 202, Oct. 17, 2000, 114 Stat. 1090, 
provided that:
    ``(a) Findings.--Congress finds the following:
        ``(1) Widespread corruption endangers the stability and security 
    of societies, undermines democracy, and jeopardizes the social, 
    political, and economic development of a society.
        ``(2) Corruption facilitates criminal activities, such as money 
    laundering, hinders economic development, inflates the costs of 
    doing business, and undermines the legitimacy of the government and 
    public trust.
        ``(3) In January 1997 the United Nations General Assembly 
    adopted a resolution urging member states to carefully consider the 
    problems posed by the international aspects of corrupt practices and 
    to study appropriate legislative and regulatory measures to ensure 
    the transparency and integrity of financial systems.
        ``(4) The United States was the first country to criminalize 
    international bribery through the enactment of the Foreign Corrupt 
    Practices Act of 1977 [Pub. L. 95-213, title I, see Tables for 
    classification] and United States leadership was instrumental in the 
    passage of the Organization for Economic Cooperation and Development 
    (OECD) Convention on Combatting Bribery of Foreign Public Officials 
    in International Business Transactions.
        ``(5) The Vice President, at the Global Forum on Fighting 
    Corruption in 1999, declared corruption to be a direct threat to the 
    rule of law and the Secretary of State declared corruption to be a 
    matter of profound political and social consequence for our efforts 
    to strengthen democratic governments.
        ``(6) The Secretary of State, at the Inter-American Development 
    Bank's annual meeting in March 2000, declared that despite certain 
    economic achievements, democracy is being threatened as citizens 
    grow weary of the corruption and favoritism of their official 
    institutions and that efforts must be made to improve governance if 
    respect for democratic institutions is to be regained.
        ``(7) In May 1996 the Organization of American States (OAS) 
    adopted the Inter-American Convention Against Corruption requiring 
    countries to provide various forms of international cooperation and 
    assistance to facilitate the prevention, investigation, and 
    prosecution of acts of corruption.
        ``(8) Independent media, committed to fighting corruption and 
    trained in investigative journalism techniques, can both educate the 
    public on the costs of corruption and act as a deterrent against 
    corrupt officials.
        ``(9) Competent and independent judiciary, founded on a merit-
    based selection process and trained to enforce contracts and protect 
    property rights, is critical for creating a predictable and 
    consistent environment for transparency in legal procedures.
        ``(10) Independent and accountable legislatures, responsive 
    political parties, and transparent electoral processes, in 
    conjunction with professional, accountable, and transparent 
    financial management and procurement policies and procedures, are 
    essential to the promotion of good governance and to the combat of 
    corruption.
        ``(11) Transparent business frameworks, including modern 
    commercial codes and intellectual property rights, are vital to 
    enhancing economic growth and decreasing corruption at all levels of 
    society.
        ``(12) The United States should attempt to improve 
    accountability in foreign countries, including by--
            ``(A) promoting transparency and accountability through 
        support for independent media, promoting financial disclosure by 
        public officials, political parties, and candidates for public 
        office, open budgeting processes, adequate and effective 
        internal control systems, suitable financial management systems, 
        and financial and compliance reporting;
            ``(B) supporting the establishment of audit offices, 
        inspectors general offices, third party monitoring of government 
        procurement processes, and anti-corruption agencies;
            ``(C) promoting responsive, transparent, and accountable 
        legislatures that ensure legislative oversight and whistle-
        blower protection;
            ``(D) promoting judicial reforms that criminalize corruption 
        and promoting law enforcement that prosecutes corruption;
            ``(E) fostering business practices that promote transparent, 
        ethical, and competitive behavior in the private sector through 
        the development of an effective legal framework for commerce, 
        including anti-bribery laws, commercial codes that incorporate 
        international standards for business practices, and protection 
        of intellectual property rights; and
            ``(F) promoting free and fair national, state, and local 
        elections.
    ``(b) Purpose.--The purpose of this title [see Short Title of 2000 
Amendments note set out under section 2151 of this title] is to ensure 
that United States assistance programs promote good governance by 
assisting other countries to combat corruption throughout society and to 
improve transparency and accountability at all levels of government and 
throughout the private sector.''


                       Deadline for Initial Report

    Pub. L. 106-309, title II, Sec. 205(b), Oct. 17, 2000, 114 Stat. 
1094, provided that: ``The initial annual report required by section 
133(d)(1) of the Foreign Assistance Act of 1961 [22 U.S.C. 2152c(d)(1)], 
as added by subsection (a), shall be transmitted not later than 180 days 
after the date of the enactment of this Act [Oct. 17, 2000].''
