H. R. 4364 - UNITED STATES ECONOMIC ASSISTANCE CONDITIONALITY ACT OF 2004

Introduced in the House of Representatives on May 13, 2004 by Mr. Hyde (IL-6).  Referred to the Subcommittee on Domestic and International Monetary Policy, Trade and Technology on June 9, 2004, for a period to be subsequently determined by the chairman. 

Background:

This bill seeks to amend the Foreign Assistance Act of 1961 that requires the governments of low income oil-producing countries to meet certain requirements relating to their oil revenues in order to be eligible to receive United States economic assistance.

Provisions:

• Seeks to establish transparency in public finances as a means of promoting political, economic and social reform in low income oil-producing countries;

• Calls for the governments of such countries to tell their people how much oil revenue the government receives and how that revenue is allocated and expended, the resulting transparency will engender more realistic public expectations, more plausible national development programs, and better means to combat corruption and promote democracy, respect for human rights, and the rule of law;

• Calls for the above measures to be taken in order to benefit U.S. business enterprises also;

• Seeks to deter corruption and ensure a level playing field in such countries for U.S. businesses, by ensuring that the governments respect the rule of law, codified regulatory practices and transparent bidding and award practices;

• Calls for export credit activities and other bilateral concessional loan programs of the United States Government for low income oil-producing countries to require that any assistance under such programs be conditional on appropriate transparency by the governments of such countries relating to oil revenues;

• Calls for international financial institutions such as the World Bank to incorporate revenue transparency across their lending and technical assistance portfolios by making full transparency a condition of all their financial support and by including it in their normal poverty reduction strategy consultations.

• States that the country must be a signatory to the United Nations Convention Against Corruption, as adopted by the United Nations General Assembly on October 31, 2003.

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