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107th Congress Rept. 107-312
HOUSE OF REPRESENTATIVES
1st Session Part 1
ZIMBABWE DEMOCRACY AND ECONOMIC RECOVERY ACT OF 2001
December 4, 2001.--Ordered to be printed
Mr. Hyde, from the Committee on International Relations, submitted the
R E P O R T
[To accompany S. 494]
[Including cost estimate of the Congressional Budget Office]
The Committee on International Relations, to whom was
referred the bill (S. 494) to provide for a transition to
democracy and to promote economic recovery in Zimbabwe, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
TABLE OF CONTENTS
The Amendment.................................................... 2
Purpose and Summary.............................................. 4
Background and Need for the Legislation.......................... 4
Committee Consideration.......................................... 7
Votes of the Committee........................................... 7
Committee Oversight Findings..................................... 7
New Budget Authority and Tax Expenditures........................ 7
Congressional Budget Office Cost Estimate........................ 7
Performance Goals and Objectives................................. 9
Constitutional Authority Statement............................... 9
Section-by-Section Analysis...................................... 9
New Advisory Committees.......................................... 10
Congressional Accountability Act................................. 10
Federal Mandates................................................. 10
The amendment is as follows:
Strike all after the enacting clause and insert the
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Zimbabwe Democracy and Economic
Recovery Act of 2001''.
SEC. 2. STATEMENT OF POLICY.
It is the policy of the United States to support the people of
Zimbabwe in their struggle to effect peaceful, democratic change,
achieve broad-based and equitable economic growth, and restore the rule
SEC. 3. DEFINITIONS.
In this Act:
(1) International financial institutions.--The term
``international financial institutions'' means the multilateral
development banks and the International Monetary Fund.
(2) Multilateral development banks.--The term
``multilateral development banks'' means the International Bank
for Reconstruction and Development, the International
Development Association, the International Finance Corporation,
the Inter-American Development Bank, the Asian Development
Bank, the Inter-American Investment Corporation, the African
Development Bank, the African Development Fund, the European
Bank for Reconstruction and Development, and the Multilateral
Investment Guaranty Agency.
SEC. 4. SUPPORT FOR DEMOCRATIC TRANSITION AND ECONOMIC RECOVERY.
(a) Findings.--Congress makes the following findings:
(1) Through economic mismanagement, undemocratic practices,
and the costly deployment of troops to the Democratic Republic
of the Congo, the Government of Zimbabwe has rendered itself
ineligible to participate in International Bank for
Reconstruction and Development and International Monetary Fund
programs, which would otherwise be providing substantial
resources to assist in the recovery and modernization of
Zimbabwe's economy. The people of Zimbabwe have thus been
denied the economic and democratic benefits envisioned by the
donors to such programs, including the United States.
(2) In September 1999 the IMF suspended its support under a
``Stand By Arrangement'', approved the previous month, for
economic adjustment and reform in Zimbabwe.
(3) In October 1999, the International Development
Association (in this section referred to as the ``IDA'')
suspended all structural adjustment loans, credits, and
guarantees to the Government of Zimbabwe.
(4) In May 2000, the IDA suspended all other new lending to
the Government of Zimbabwe.
(5) In September 2000, the IDA suspended disbursement of
funds for ongoing projects under previously-approved loans,
credits, and guarantees to the Government of Zimbabwe.
(b) Support for Democratic Transition and Economic Recovery.--
(1) Bilateral debt relief.--Upon receipt by the appropriate
congressional committees of a certification described in
subsection (d), the Secretary of the Treasury shall undertake a
review of the feasibility of restructuring, rescheduling, or
eliminating the sovereign debt of Zimbabwe held by any agency
of the United States Government.
(2) Multilateral debt relief and other financial
assistance.--It is the sense of Congress that, upon receipt by
the appropriate congressional committees of a certification
described in subsection (d), the Secretary of the Treasury
(A) direct the United States executive director of
each multilateral development bank to propose that the
bank should undertake a review of the feasibility of
restructuring, rescheduling, or eliminating the
sovereign debt of Zimbabwe held by that bank; and
(B) direct the United States executive director of
each international financial institution to which the
United States is a member to propose to undertake
financial and technical support for Zimbabwe,
especially support that is intended to promote
Zimbabwe's economic recovery and development, the
stabilization of the Zimbabwean dollar, and the
viability of Zimbabwe's democratic institutions.
(c) Multilateral Financing Restriction.--Until the President makes
the certification described in subsection (d), and except as may be
required to meet basic human needs or for good governance, the
Secretary of the Treasury shall instruct the United States executive
director to each international financial institution to oppose and vote
(1) any extension by the respective institution of any
loan, credit, or guarantee to the Government of Zimbabwe; or
(2) any cancellation or reduction of indebtedness owed by
the Government of Zimbabwe to the United States or any
international financial institution.
(d) Presidential Certification That Certain Conditions Are
Satisfied.--A certification under this subsection is a certification
transmitted to the appropriate congressional committees of a
determination made by the President that the following conditions are
(1) Restoration of the rule of law.--The rule of law has
been restored in Zimbabwe, including respect for ownership and
title to property, freedom of speech and association, and an
end to the lawlessness, violence, and intimidation sponsored,
condoned, or tolerated by the Government of Zimbabwe, the
ruling party, and their supporters or entities.
(2) Election or pre-election conditions.--Either of the
following two conditions is satisfied:
(A) Presidential election.--Zimbabwe has held a
presidential election that is widely accepted as free
and fair by independent international monitors, and the
president-elect is free to assume the duties of the
(B) Pre-election conditions.--In the event the
certification is made before the presidential election
takes place, the Government of Zimbabwe has
sufficiently improved the pre-election environment to a
degree consistent with accepted international standards
for security and freedom of movement and association.
(3) Commitment to equitable, legal, and transparent land
reform.--The Government of Zimbabwe has demonstrated a
commitment to an equitable, legal, and transparent land reform
program consistent with agreements reached at the International
Donors' Conference on Land Reform and Resettlement in Zimbabwe
held in Harare, Zimbabwe, in September 1998.
(4) Fulfillment of agreement ending war in democratic
republic of congo.--The Government of Zimbabwe is making a good
faith effort to fulfill the terms of the Lusaka, Zambia,
agreement on ending the war in the Democratic Republic of
(5) Military and national police subordinate to civilian
government.--The Zimbabwean Armed Forces, the National Police
of Zimbabwe, and other state security forces are responsible to
and serve the elected civilian government.
(e) Waiver.--The President may waive the provisions of subsection
(b)(1) or subsection (c), if the President determines that it is in the
national interest of the United States to do so.
SEC. 5. SUPPORT FOR DEMOCRATIC INSTITUTIONS, THE FREE PRESS AND
INDEPENDENT MEDIA, AND THE RULE OF LAW.
(a) In General.--The President is authorized to provide assistance
under part I and chapter 4 of part II of the Foreign Assistance Act of
(1) support an independent and free press and electronic
media in Zimbabwe;
(2) support equitable, legal, and transparent mechanisms of
land reform in Zimbabwe, including the payment of costs related
to the acquisition of land and the resettlement of individuals,
consistent with the International Donors' Conference on Land
Reform and Resettlement in Zimbabwe held in Harare, Zimbabwe,
in September 1998, or any subsequent agreement relating
(3) provide for democracy and governance programs in
(b) Funding.--Of the funds authorized to be appropriated to carry
out part I and chapter 4 of part II of the Foreign Assistance Act of
1961 for fiscal year 2002--
(1) $20,000,000 is authorized to be available to provide
the assistance described in subsection (a)(2); and
(2) $6,000,000 is authorized to be available to provide the
assistance described in subsection (a)(3).
(c) Supersedes Other Laws.--The authority in this section
supersedes any other provision of law.
SEC. 6. SENSE OF CONGRESS ON THE ACTIONS TO BE TAKEN AGAINST
INDIVIDUALS RESPONSIBLE FOR VIOLENCE AND THE
BREAKDOWN OF THE RULE OF LAW IN ZIMBABWE.
It is the sense of Congress that the President should begin
immediate consultation with the governments of European Union member
states, Canada, and other appropriate foreign countries on ways in
(1) identify and share information regarding individuals
responsible for the deliberate breakdown of the rule of law,
politically motivated violence, and intimidation in Zimbabwe;
(2) identify assets of those individuals held outside
(3) implement travel and economic sanctions against those
individuals and their associates and families; and
(4) provide for the eventual removal or amendment of those
Purpose and Summary
The bill states that it is U.S. policy to support the
Zimbabwean people in their current struggles to effect
peaceful, democratic change, achieve broad-based and equitable
economic growth, and restore the rule of law. It supports
democratic transition and economic recovery through provisions
of debt relief upon Presidential certification that the
following conditions have been fulfilled: support for
democratic institutions, free press and independent media, and
the rule of law. It authorizes funding for equitable land
reform and assistance for democracy and governance. The bill
also contains a sense of Congress that the President should
consult with the Europan Union, Canada, and other appropriate
foreign governments to take action against individuals
responsible for politically motivated violence and the
breakdown of the rule of law in Zimbabwe.
Background and Need for the Legislation
After winning majority rule in 1980, Zimbabwe (formerly
Rhodesia) showed strong potential of becoming a model of
African development. It expanded a robust agricultural economy
and it enjoyed a well-respected parliament and independent
judiciary. The government of President Robert Mugabe extended
social services to the previously disenfranchised majority,
helping to give the country one of Africa's most highly
educated populations. Zimbabwe was a source of stability in a
largely troubled southern Africa region.
Unfortunately, today's Zimbabwe is a very different
country. For several years now, its government has become
increasingly autocratic, systematically repressing peaceful
political opposition. It has sanctioned wide scale human rights
violations, which have been condemned by the United States, as
well as the European Union and various human rights
organizations. The Zimbabwe Lawyers for Human Rights group has
observed that it is, ``outraged by the continued brutality,
lack of respect for fundamental human rights and political
partisanship of the Zimbabawe Republic Police.'' For
Zimbabweans, it is a sad irony that the Mugabe government
represses political opponents with the same Law and Order
Maintenance Act which Ian Smith's repressive Rhodesian
government pioneered to prevent majority rule. The Committee
shares the concern of many observers that Zimbabwe stands on
the brink of a violent political implosion.
Zimbabwe also has been in deep economic decline. Because of
overall economic mismanagement and a government-driven invasion
of farmland, a once productive nation now faces accelerating
poverty and widespread starvation. Foreign investment has
plummeted due to a lack of investor confidence in the
government's commitment to preserving the rule of law. Because
of the government's economic policies, Zimbabwe is among the
minority of African countries ineligible for the African Growth
and Opportunity Act (AGOA), signed into law in 2000. The
Committee endorses this Administration designation of
The Committee has closely monitored events in Zimbabwe. In
the second session of the 106th Congress, the Subcommittee on
Africa held a hearing titled, ``Zimbabwe: Democracy on the
Line.'' At that hearing, Members heard of government-sponsored
human rights abuses. The Subcommittee Chairman was scheduled to
lead an International Republican Institute election monitoring
team to the 2000 parliamentary election (widely judged not to
be ``free and fair'') until the government denied visas.
Throughout the current Congress, Committee staff briefings have
been held with Administration officials, Zimbabwe government
officials, Zimbabwe opposition officials, and human rights
organizations to better understand developments in this
important southern African country. The Committee intends to
continue this close monitoring.
According to the Zimbabwean Constitution, presidential
elections must be held by the end of March 2002. After losing
ground at the polls in a parliamentary byelection, President
Mugabe's government has acted increasingly violent, suppressing
the independent press and political opposition. His government
has rejected international efforts to address land reform in
Zimbabwe, the most recent being the British-led Abuja Agreement
made in September. The Mugabe government has breached this
accord, which should have ended all land takeovers, by
subsequently sanctioning farm invasions and the blatant
disregard for the rule of law. Adding to the suffering of the
Zimbabwean people is the rapid spread of HIV/AIDS. Zimbabwe is
one of Africa's most heavily impacted countries. The Committee
strongly supports U.S. HIV/AIDS programming in Zimbabwe.
The regional implications of Zimbabwe's looming
humanitarian disaster are grave. Neighboring nations could lose
stability due to a mass exodus of Zimbabweans, which is
possible with a continued economic and political deterioration.
South Africa in particular faces this specter.
The Zimbabwe Democracy and Economic Recovery Act of 2001 is
a recognition that the U.S. has a significant interest in
seeing that Zimbabwe reverse its decline and begin to reach its
considerable potential. It establishes a policy framework of
invectives for the government of Zimbabwe to proceed with free
and fair elections, respect the rule of law (including as it
relates land reform) and take other policy actions. If the
government of Zimbabwe moves in this direction, the legislation
encourages the U.S. Treasury Department to work through the
international financial institutions in order to provide debt
relief and other economic development aid to Zimbabwe. But
absent a Zimbabwe government commitment to democracy and the
rule of law, the legislation prohibits the U.S. from supporting
any such assistance, which is the international financial
institution's current position.
S. 494 also authorizes U.S. bilateral aid for land reform
and governance programs. The Committee believes, however, that
land reform aid under current conditions would be
counterproductive. The Committee strongly supports democracy
and governance programs and programs supporting an independent
press in Zimbabwe, whose funding is authorized by this
legislation. The Committee notes that the Mugabe government
enjoys a virtual monopoly on radio broadcasts, which should be
President Mugabe is doing all he can to see that the world
is not watching his government's actions. Washington Post and
New York Times reporters have been denied visas. Foreign
journalists are routinely harassed and intimidated. Zimbabwean
journalists, though, have born the brunt of government attack.
Newspaper offices have been bombed, with likely government
complicity. Against this, the Committee notes profiles in
courage. For example, Geoff Nyarota, editor of the Daily News,
recently won the New York-based Committee to Protect
Journalists Press Freedom Award for his courageous work
uncovering government corruption. There is reason to believe
that passage of this legislation would provide a considerable
morale boost to those Zimbabweans resisting government
Given the fact that there are years of credible reporting
of Zimbabwe government corruption, this legislation encourages
the Administration to begin the process of imposing personal
sanctions (travel ban and asset freeze) on those individuals
responsible for the breakdown of the rule of law in Zimbabwe.
This should include consultation with others nations and
international organizations. The European Union has already
taken steps to impose such ``smart sanctions.'' The Committee
believes that this diplomatic tool could be of considerable
impact in promoting democracy and the rule of law in Zimbabwe.
Zimbabweans value frequent travels abroad and the ability to
send their children to school overseas.
In the run up to presidential elections, Zimbabwe is
suffering increasing political violence. The political
opposition deserves great credit for remaining peaceful in the
face of government violence. For years now, its members have
been beaten, tortured, and killed. Their discipline will be
further tested in the coming months as the Mugabe regime
provokes unrest, possibly to invoke a state of emergency to
legitimize its canceling elections. Ominously, President Mugabe
has begun referring to the political opposition as
``terrorists.'' The Committee hopes that the political
opposition remains steadfastly committed to non-violence. It
also encourages the Administration to prepare a policy and
security response should a state of emergency be declared.
The Committee notes that the current crisis in Zimbabwe is
in many ways more solvable than other crisis in Africa. More so
than other African countries, Zimbabwe has the building blocks
of a healthy democracy and economy. The Zimbabwean people are
educated and skilled. There is a vibrant and peaceful
opposition. The possibility of AGOA adds to Zimbabwe's
considerable economic potential. The Committee expresses its
desire to support Zimbabweans who are struggling against
tyranny so that their country can begin to reach its potential.
S. 494 helps lay a foundation for the U.S. to contribute to
The Committee's Subcommittee on Africa held a hearing on
the crisis titled Zimbabwe: Democracy on the Line, June 13,
On November 28, 2001, the Committee met in open session and
ordered favorably reported the bill S. 494 with amendment by
voice vote, a quorum being present.
Votes of the Committee
There were no recorded votes of the Committee.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of House Rule XIII is inapplicable because
this legislation does not provide new budgetary authority or
increased tax expenditures.
Congressional Budget Office Cost Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to the bill, S. 494, the following estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
Congressional Budget Office,
Washington, DC, November 30, 2001.
Hon. Henry J. Hyde, Chairman,
Committee on International Relations,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 494, the Zimbabwe
Democracy and Economic Recovery Act of 2001.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Joseph C.
Whitehill, who can be reached at 226-2840.
Dan L. Crippen, Director.
Honorable Tom Lantos
Ranking Democratic Member
S. 494--Zimbabwe Democracy and Economic Recovery Act of 2001.
S. 494 would support a transition to democracy and promote
economic recovery in Zimbabwe through a set of incentives and
sanctions. The act would require the United States to oppose
lending by international financial institutions to or debt
relief for Zimbabwe until the President certifies to the
Congress that certain conditions are satisfied. It would,
however, authorize additional funds for programs to reform
landholding and to promote democracy and good governance in
Zimbabwe. Assuming the appropriation of the authorized amounts,
CBO estimates that implementing the act would cost $23 million
over the 2002-2006 period. Because S. 494 would not affect
direct spending or receipts, pay-as-you-go procedures would not
S. 494 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary impact of S. 494 is shown in the
following table. The costs of this legislation fall within
budget function 150 (international affairs).
BASIS OF ESTIMATE
S. 494 would earmark $20 million for land reform and $6
million for programs to promote democracy and good governance
in Zimbabwe from funds otherwise authorized to be appropriated
in 2002 for development assistance and the economic support
fund. No funds are currently authorized for 2002. CBO assumes
that the specified amounts would be appropriated before the end
of the session, and that outlays would follow historical
By fiscal year, in millions of dollars
2001 2002 2003 2004 2005 2006
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law for Zimbabwe 16 0 0 0 0 0
Budget Authority \1\
Estimated Outlays 22 19 10 5 3 2
Proposed Changes 0 26 0 0 0 0
Estimated Outlays 0 2 8 7 4 2
Spending Under S. 494 for Zimbabwe 16 26 0 0 0 0
Authorization Level \1\
Estimated Outlays 22 21 18 12 7 4
\1\ The 2001 level is the amount appropriated for that year.
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
S. 494 contains no intergovernmental or private-sector
mandates as defined in UMRA and would not affect the budgets of
state, local, or tribal governments.
PREVIOUS CBO ESTIMATE
On July 16, 2001, CBO transmitted a cost estimate for S.
494 as ordered reported by the Senate Committee on Foreign
Relations on July 12, 2001. The two cost estimates are
ESTIMATE PREPARED BY:
Federal Costs: Joseph C. Whitehill (226-2840)
Impact on State, Local, and Tribal Governments: Elyse Goldman
Impact on the Private Sector: Lauren Marks (226-2940)
ESTIMATE APPROVED BY:
Peter H. Fontaine
Deputy Assistant Director for Budget Analysis
Performance Goals and Objectives
The goals and objectives of this legislation are consistent
with the Government Performance and Results Act. Plan submitted
to Congress by the Department of State and the Agency for
International Development for their fiscal year 2002 programs.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in article I, section 8, clause18 of the
Section-by-Section Analysis and Discussion
Sec. 1. Title. Zimbabwe Democracy and Economic Recovery Act
Sec. 2. Statement of Policy. Declares it is U.S. policy to
support the Zimbabwean people in their struggles to effect
peaceful, democratic change, achieve broad-based and equitable
economic growth, and restore the rule of law.
Sec. 3. Definitions. International financial institutions
refers to multilateral development banks and the International
Sec. 4. Support for Democratic Transition and Economic
Recovery. Encourages the cancellation or reduction of
indebtedness owed to the United States and certain
international financial institutions by, or the extension of
loans, credit, or guarantees by such institutions to, the
government of Zimbabwe upon the President's certification to
the appropriate congressional committees that the government of
Zimbabwe has: (1) restored the rule of law; (2) met certain
election or pre-election conditions; (3) demonstrated a
commitment to an equitable, legal, and transparent land reform
program that is consistent with agreements reached at the1998
International Donors' Conference on Land Reform and
Resettlement in Zimbabwe. (4) made a good faith effort to end
the war in the Democratic Republic of Congo; and (5)
subordinated the Zimbabwean Armed Forces, the National Police
of Zimbabwe, and other state security forces to the elected
civilian government. Restricts multilateral assistance to
Zimbabwe until such certification is made. Authorizes the
President to waive such requirements if it is in the national
interest of the United States.
Sec. 5 . Support for Democratic Institutions, the Free
Press and Independent Media, and The Rule of Law. Authorizes
the President to provide certain foreign assistance funds to
Zimbabwe to support the establishment of democratic
institutions, free press and independent media, and the rule of
law. Authorizes appropriations for FY 2002.
Sec. 6. Sense of Congress on the Actions to Be Taken
Against Individuals Responsible for Violence and the Breakdown
of The Rule of Law in Zimbabwe. Urges the President to consult
immediately with the governments of European Union member
states, Canada, and other appropriate foreign countries on
specified actions to be taken against individuals responsible
for violence and the breakdown of the rule of law in Zimbabwe.
New Advisory Committees
S. 494 does not establish or authorize any new advisory
Congressional Accountability Act
S. 494 does not apply to the legislative branch.
S. 494 provides no Federal mandates.