U.S. Policy Towards the African Development Bank and the African Development Fund
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U.S. POLICY TOWARDS THE AFRICAN DEVELOPMENT BANK AND THE AFRICAN DEVELOPMENT FUND HEARING BEFORE THE SUBCOMMITTEE ON INTERNATIONAL MONETARY POLICY AND TRADE OF THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SEVENTH CONGRESS FIRST SESSION APRIL 25, 2001 Printed for the use of the Committee on Financial Services Serial No. 107–10 ( U.S. GOVERNMENT PRINTING OFFICE 72–179 PS WASHINGTON : 2001 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: (202) 512–1800 Fax: (202) 512–2550 Mail: Stop SSOP, Washington DC 20402–0001 HOUSE COMMITTEE ON FINANCIAL SERVICES MICHAEL G. OXLEY, Ohio, Chairman JAMES A. LEACH, Iowa JOHN J. LAFALCE, New York MARGE ROUKEMA, New Jersey, Vice Chair BARNEY FRANK, Massachusetts DOUG BEREUTER, Nebraska PAUL E. KANJORSKI, Pennsylvania RICHARD H. BAKER, Louisiana MAXINE WATERS, California SPENCER BACHUS, Alabama CAROLYN B. MALONEY, New York MICHAEL N. CASTLE, Delaware LUIS V. GUTIERREZ, Illinois PETER T. KING, New York NYDIA M. VELA´ ZQUEZ, New York EDWARD R. ROYCE, California MELVIN L. WATT, North Carolina FRANK D. LUCAS, Oklahoma GARY L. ACKERMAN, New York ROBERT W. NEY, Ohio KEN BENTSEN, Texas BOB BARR, Georgia JAMES H. MALONEY, Connecticut SUE W. KELLY, New York DARLENE HOOLEY, Oregon RON PAUL, Texas JULIA CARSON, Indiana PAUL E. GILLMOR, Ohio BRAD SHERMAN, California CHRISTOPHER COX, California MAX SANDLIN, Texas DAVE WELDON, Florida GREGORY W. MEEKS, New York JIM RYUN, Kansas BARBARA LEE, California BOB RILEY, Alabama FRANK MASCARA, Pennsylvania STEVEN C. LATOURETTE, Ohio JAY INSLEE, Washington DONALD A. MANZULLO, Illinois JANICE D. SCHAKOWSKY, Illinois WALTER B. JONES, North Carolina DENNIS MOORE, Kansas DOUG OSE, California CHARLES A. GONZALEZ, Texas JUDY BIGGERT, Illinois STEPHANIE TUBBS JONES, Ohio MARK GREEN, Wisconsin MICHAEL E. CAPUANO, Massachusetts PATRICK J. TOOMEY, Pennsylvania HAROLD E. FORD JR., Tennessee CHRISTOPHER SHAYS, Connecticut RUBE´ N HINOJOSA, Texas JOHN B. SHADEGG, Arizona KEN LUCAS, Kentucky VITO FOSSELLA, New York RONNIE SHOWS, Mississippi GARY G. MILLER, California JOSEPH CROWLEY, New York ERIC CANTOR, Virginia WILLIAM LACY CLAY, Missouri FELIX J. GRUCCI, JR., New York STEVE ISRAEL, New York MELISSA A. HART, Pennsylvania MIKE ROSS, Arizona SHELLEY MOORE CAPITO, West Virginia MIKE FERGUSON, New Jersey BERNARD SANDERS, Vermont MIKE ROGERS, Michigan PATRICK J. TIBERI, Ohio Terry Haines, Chief Counsel and Staff Director (II) SUBCOMMITTEE ON INTERNATIONAL MONETARY POLICY AND TRADE DOUG BEREUTER, Nebraska, Chairman DOUG OSE, California, Vice Chairman BERNARD SANDERS, Vermont MARGE ROUKEMA, New Jersey MAXINE WATERS, California RICHARD H. BAKER, Louisiana BARNEY FRANK, Massachusetts MICHAEL N. CASTLE, Delaware MELVIN L. WATT, North Carolina JIM RYUN, Kansas JULIA CARSON, Indiana DONALD A. MANZULLO, Illinois PAUL E. KANJORSKI, Pennsylvania JUDY BIGGERT, Illinois BRAD SHERMAN, California MARK GREEN, Wisconsin JANICE D. SCHAKOWSKY, Illinois PATRICK J. TOOMEY, Pennsylvania CAROLYN B. MALONEY, New York CHRISTOPHER SHAYS, Connecticut LUIS V. GUTIERREZ, Illinois GARY G. MILLER, California NYDIA M. VELA´ ZQUEZ, New York SHELLEY MOORE CAPITO, West Virginia KEN BENTSEN, Texas MIKE FERGUSON, New Jersey (III) C O N T E N T S Page Hearing held on: April 25, 2001 ................................................................................................... 1 Appendix April 25, 2001 ................................................................................................... 37 WITNESSES WEDNESDAY, APRIL 25, 2001 Botchwey, Dr. Kwesi, Director, Africa Research and Programs, Harvard Center for International Development ............................................................... 10 Njehuˆ , Njoki Njoroge, Director, 50 Years Is Enough: U.S. Network for Global Economic Justice .................................................................................................. 13 Sherk, Dr. Donald R., former U.S. Executive Director, African Development Bank ...................................................................................................................... 7 APPENDIX Prepared statements: Bereuter, Hon. Doug ........................................................................................ 38 Oxley, Hon. Michael G. .................................................................................... 41 Sanders, Hon. Bernard ..................................................................................... 43 Botchwey, Dr. Kwesi ........................................................................................ 76 Njehuˆ , Njoki Njoroge ........................................................................................ 98 Sherk, Dr. Donald R. ........................................................................................ 46 ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD Botchwey, Dr. Kwesi: AIDS and Development, Dec. 2000 ................................................................. 80 Njehuˆ , Njoki Njoroge: Africans Denounce IMF, WB as Wolfenson and Kohler Visit, Mali ............. 106 Africans Denounce IMF, WB as Wolfenson and Kohler Visit, Tanzania ..... 108 Sherk, Dr. Donald R.: The African Development Bank: A Rare Success on a Troubled Continent 51 (V) U.S. POLICY TOWARDS THE AFRICAN DEVELOPMENT BANK AND THE AFRICAN DEVELOPMENT FUND WEDNESDAY, APRIL 25, 2001 U.S. HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON INTERNATIONAL MONETARY POLICY AND TRADE, COMMITTEE ON FINANCIAL SERVICES, Washington, DC. The subcommittee met, pursuant to call, at 1:35 p.m., in room 2128, Rayburn House Office Building, Hon. Doug Bereuter, [chairman of the subcommittee], presiding. Present: Chairman Bereuter; Representatives Oxley, Ose, Manzullo, Green, Sanders, Waters, Watt, Carson, Schakowsky, Lee, Bentsen, Sherman and C. Maloney of New York. Chairman BEREUTER. The hearing will come to order. The Sub- committee on International Monetary Policy and Trade meets today in open session to receive testimony and to conduct oversight on the African Development Bank and Fund. Today marks the first hearing of this new House Financial Services subcommittee. Actu- ally, it had its predecessor subcommittees in slightly different form on the Banking Committee—and I was privileged to serve as the Ranking Member there for 6 or 8 years under the chairmanship of Barney Frank, who is a Member of this subcommittee. I look forward to serving as Chairman of this subcommittee, which will focus on international financial institutions and trade issues. Moreover, I am also pleased to be working with the distin- guished Ranking Member of this subcommittee, Mr. Sanders from Vermont, and all Members of this new subcommittee. Since this is the initial meeting, I think it is important just to mention two procedural circumstances. First of all, the committee rules call for the Chairman and the Ranking Minority Member to have a 5-minute opening statement if they care to. All other Mem- bers are entitled to a 3-minute opening statement under the com- mittee rules. It is my intention to continue my past practice as Chairman to recognize people who are in attendance, rotating across the aisle, who are in attendance at the beginning of the hearing, and then as additional Members come in, they will be recognized in the order in which they come after the beginning of the hearing. This Member has tried to move ahead with the conversation of reauthorization of the Export-Import Bank, but we have been frus- trated to some extent by the slowness of the process of bringing the (1) 2 Under Secretaries and Assistant Secretaries of Treasury on board, those relevant leaders of the Treasury Department that have so much to do with the MDBs and, in the case of the Export-Import Bank, are not yet in place. But we are alternating the sub- committee hearings from the African Development Bank and Fund and, it is my intention, then to the Export-Import Bank. And we will proceed, I hope, without any further delay, and if the Administration has their witnesses in order, we will hear from them first. If not, we will take witnesses who have something to say in support or opposition to the Export-Import Bank for exam- ple. I want Members to know that I regard briefings, informal brief- ings, ahead of new subjects that we are taking on as an important part of the subcommittee’s activity, so I encourage Members to come, if at all possible, to these informal briefings, which will be held before we take on a new subject. If not, if it is not possible, I encourage you certainly to have your staff there and to keep your- self informed as we proceed, then, to the hearings, which will fol- low the briefings. The subcommittee has jurisdiction over the multilateral develop- ment banks, including the African Development Bank and Fund. It is important that this subcommittee, in my judgment, conduct over- sight hearings on the African Development Bank and Fund. The U.S. is a non-regional member of both the Bank and the Fund, but over the Bank’s history, the U.S. has contributed an average com- mitment of 5.6 percent of the Bank’s capital. We are the third larg- est contributor and the largest non-regional contributor. Furthermore, as I will discuss in more detail later, the Bank and the Fund have been the most fiscally troubled among the regional development banks, and perhaps the most managerially challenged of the MDBs. Moreover, with the upcoming annual meeting of the Bank on May 29 through May 31, this hearing record should prove instruc- tive