Zimbabwe Democracy and Economic Recovery Act of 2001

The Zimbabwe Democracy and Economic Recovery Act (S. 494) is an act passed by the United States Congress sanctioned to provide for a transition to democracy and to promote economic recovery in Zimbabwe.

Senators Bill Frist (R-Tennessee) and Russ Feingold (D-Wisconsin) introduced the bill on March 8, 2001.^[1] Senators Frist, Jesse Helms (R-North Carolina), Hillary Rodham Clinton (D-New York), and Joseph Biden (D-Delaware) sponsored the bill. The Senate passed the bill on August 1 and the House passed the bill on December 4.^[2] President George W. Bush signed it into law on December 21.^[3]

Simbi Veke Mubako, Zimbabwe's ambassador, and Cynthia McKinney accused supporters of the bill of anti-black racism.^[4][5]

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 of law."

Sanctions

The sanctions nature of the Zimbabwe Democracy and Economic Recovery Act of 2001 are mentioned below:

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 which to--

(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 Zimbabwe;

(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 sanctions

(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 against--

(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.

The institutions directly affected by this policy are listed in Sec 3, titled Definitions:

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

Especially the last institution, the Multilateral Investment Guarantee Agency is important in underwriting loans between governments.

References