text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Middle East and North Africa 
  Transition and Development Act''.
  
  SEC. 2. FINDINGS.
  
      Congress makes the following findings:
              (1) The European Bank for Reconstruction and Development 
          was created to support the transition of command economies to 
          market economies following the collapse of communist regimes in 
          1989.
              (2) The Bank is the only international financial 
          institution that--
                      (A) has a transition mandate;
                      (B) includes political aspects to its mandate; and
                      (C) seeks to assist only those countries that are 
                  committed to, and are applying, the principles of 
                  multiparty democracy, pluralism, and development of 
                  market economics in accordance with Article 1 of the 
                  Agreement Establishing the European Bank for 
                  Reconstruction and Development.
              (3) Egypt, which is a current shareholder of the Bank, has 
          requested that the Bank consider Egypt's candidacy for becoming 
          a country of activity. Consideration for including Egypt in the 
          Bank's geographic mandate has been accelerated at the request 
          of Egypt's interim government.
              (4) Other countries from the Middle East and North Africa, 
          including Tunisia, have requested that the Bank consider their 
          potential to become countries of activity.
              (5) The Bank estimates that approximately $4,000,000,000 
          per year could be provided for financial investment in new 
          countries of activity in North Africa from the Bank's existing 
          financial resources, without the need to call on its 
          shareholders for additional capital.
              (6) The functions of the Bank are consistent with the 
          critical and rising economic needs of Egypt and the Middle East 
          and North Africa.
  
  SEC. 3. DEFINITIONS.
  
      In this Act:
              (1) Agreement establishing the european bank for 
          reconstruction and development.--The term ``Agreement 
          Establishing the European Bank for Reconstruction and 
          Development'' means the Agreement establishing the European 
          Bank for Reconstruction and Development, done at Paris May 29, 
          1990, and entered into force March 28, 1991.
              (2) Appropriate congressional committees.--The term 
          ``appropriate congressional committees'' means--
                      (A) the Committee on Foreign Relations and the 
                  Committee on Appropriations of the Senate; and
                      (B) the Committee on Financial Services and the 
                  Committee on Appropriations of the House of 
                  Representatives.
              (3) Bank.--The term ``Bank'' means the European Bank for 
          Reconstruction and Development.
              (4) Country of activity.--The term ``country of activity'' 
          means a country in which the Bank provides its resources for 
          loans or other assistance, including through the use of special 
          funds.
              (5) International financial institution.--The term 
          ``international financial institution'' has the meaning given 
          that term in section 1701(c)(2) of the International Financial 
          Institutions Act (22 U.S.C. 262r(c)(2)).
              (6) Multilateral development bank.--The term ``multilateral 
          development bank'' has the meaning given that term in section 
          1701(c)(4) of the International Financial Institutions Act (22 
          U.S.C. 262r(c)(4)).
  
  SEC. 4. UNITED STATES POLICY WITH RESPECT TO COUNTRIES LOCATED IN THE 
                MIDDLE EAST AND NORTH AFRICA.
  
      (a) Policy Declaration.--It is the policy of the United States--
              (1) to support a successful and sustainable transition to 
          democracy in the Middle East and North Africa, including Egypt 
          and Tunisia, that reflects the legitimate aspirations of the 
          people in that region for greater political freedom and 
          economic opportunity; and
              (2) to increase economic prosperity in that region through 
          financial investment and technical assistance and by utilizing 
          the resources of appropriate multilateral development banks.
      (b) Promotion of United States Policy.--The Secretary of the 
  Treasury should instruct the United States Executive Director of the 
  European Bank for Reconstruction and Development to use the voice and 
  vote of the United States to promote the policies described in 
  subsection (a).
  
  SEC. 5. NEGOTIATING OBJECTIVES WITH RESPECT TO AN AGREEMENT TO EXPAND 
                THE MANDATE OF THE EUROPEAN BANK FOR RECONSTRUCTION AND 
                DEVELOPMENT TO COUNTRIES LOCATED IN THE MIDDLE EAST AND 
                NORTH AFRICA.
  
      (a) In General.--The negotiating objectives of the United States 
  with respect to an agreement described in subsection (b) should be to 
  seek--
              (1) criteria that are consistent with the criteria 
          described in section 6(b) for the approval of loans or other 
          assistance by the Bank for countries that become countries of 
          activity as a result of the implementation of the agreement; 
          and
              (2) the establishment by the Bank of a credible mechanism 
          to ensure that countries of activity that are not committed to 
          the fundamental principles of multiparty democracy, pluralism, 
          and market economics do not continue to benefit from the 
          resources of the Bank.
      (b) Agreement Described.--An agreement described in this subsection 
  is an agreement to expand the use of the resources of the Bank for 
  countries located in the Middle East or North Africa, including through 
  an amendment to the Agreement Establishing the European Bank for 
  Reconstruction and Development.
  
  SEC. 6. SUPPORT FOR LOANS AND OTHER ASSISTANCE PROVIDED BY THE BANK TO 
                COUNTRIES OF ACTIVITY THAT MEET CERTAIN CRITERIA.
  
      (a) In General.--The Secretary of the Treasury should instruct the 
  United States Executive Director of the Bank to use the voice and vote 
  of the United States to oppose the approval of a loan or other 
  assistance from the Bank to a country of activity in the Middle East or 
  North Africa if the country does not meet the criteria described in 
  subsection (b).
      (b) Criteria Described.--A country of activity meets the criteria 
  described in this subsection if the government of the country--
              (1) requests the Bank to conduct activities in the country;
              (2) meets, or is demonstrably committed to meeting, the 
          criteria set forth in Article 1 of the Agreement Establishing 
          the European Bank for Reconstruction and Development, including 
          a commitment to ``the principles of multiparty democracy, 
          pluralism and market economics'';
              (3) demonstrates a commitment to free, fair, and inclusive 
          elections that meet international standards;
              (4) has a public commitment to universally recognized human 
          rights and freedoms, including freedom of religion, 
          association, assembly, and expression, and demonstrates a 
          commitment to respect those rights and freedoms in practice; 
          and
              (5) implements, or is demonstrably committed to 
          implementing, economic reforms that advance private sector 
          growth, improve the investment climate, increase transparency, 
          especially transparency in public finances, and foster job 
          creation.
      (c) Consultations With Congress With Respect to New Countries of 
  Activity.--Not later than 10 days before a vote of the Board of 
  Directors or the Board of Governors of the Bank to approve a country 
  located in the Middle East or in North Africa as a new country of 
  activity, the Secretary of the Treasury shall--
              (1) notify the appropriate congressional committees of the 
          vote; and
              (2) consult with those committees and describe to those 
          committees how that country meets the criteria established by 
          the Bank for being a country of activity.
      (d) Annual Report.--Not later than one year after the date of the 
  enactment of this Act, and annually thereafter until the fifth year 
  after such date of enactment, the Secretary of the Treasury shall 
  submit to the appropriate congressional committees a report that 
  includes the following:
              (1) A description of the activities of the Bank in each 
          country of activity that is located in the Middle East or in 
          North Africa.
              (2) The assessment of the Bank with respect to the ongoing 
          eligibility of each such country to receive assistance from the 
          Bank.
              (3) A description of how the activities carried out by the 
          Bank in each such country during the preceding year served to 
          promote the functions of the Bank, as described in Article 2 of 
          the Agreement Establishing the European Bank for Reconstruction 
          and Development.
              (4) An assessment of--
                      (A) the extent to which the activities of the Bank 
                  are complementary to the activities of other 
                  international financial institutions operating in the 
                  Middle East and North Africa; and
                      (B) the extent of cooperation between the Bank and 
                  those other international financial institutions.
              (5) A list of any countries being considered to be new 
          countries of activity.
  
  SEC. 7. SUPPORT FOR CLEAR STANDARDS FOR GRADUATION OF COUNTRIES OF 
                ACTIVITY.
  
      The Secretary of the Treasury should instruct the United States 
  Executive Director of the Bank to use the voice and vote of the United 
  States to seek the adoption by the Bank of clear standards for the 
  successful graduation of countries of activity if those countries have 
  substantially achieved the transition objectives of the Bank.
  
  SEC. 8. AUTHORIZATION FOR THE EUROPEAN BANK FOR RECONSTRUCTION AND 
                DEVELOPMENT.
  
      (a) Findings.--Congress makes the following findings:
              (1) The request by the European Bank for Reconstruction and 
          Development for subscription of capital is for callable shares 
          only. Historically, callable shares, while requiring an 
          authorization of funds, do not require an appropriation.
              (2) The International Programs Justification for 
          Appropriations and Fiscal Year 2012 Budget Request of the 
          Department of the Treasury for the European Bank for 
          Reconstruction and Development is $0, stating that ``[t]his 
          callable capital does not require appropriated funds''.
      (b) Authorization.--The European Bank for Reconstruction and 
  Development Act (section 562(c) of Public Law 101-531; 22 U.S.C. 290l 
  et seq.) is amended by adding at the end the following:
              ``(12) Capital increase.--
                      ``(A) Subscription authorized.--
                              ``(i) In general.--The United States 
                          Governor of the Bank may subscribe on behalf of 
                          the United States to not more than 90,044 
                          additional callable shares of capital stock of 
                          the Bank, in accordance with Resolution 128, as 
                          adopted by the Board of Governors of the Bank 
                          at the annual meeting in Zagreb, Croatia, on 
                          May 14, 2010.
                              ``(ii) Condition.--Any subscription by the 
                          United States to additional capital stock of 
                          the Bank shall be effective only to such extent 
                          and in such amounts as are provided for in 
                          advance by appropriations Acts.
                      ``(B) Authorization of appropriations.--In order to 
                  pay for the increase in the United States subscription 
                  to capital stock of the Bank authorized under 
                  subparagraph (A), there are authorized to be 
                  appropriated $1,252,331,952, without fiscal year 
                  limitation, for payment by the Secretary of the 
                  Treasury.''.
  
  SEC. 9. STATUS OF COUNTRIES AS CANDIDATE COUNTRIES UNDER THE MILLENNIUM 
                CHALLENGE ACT OF 2003.
  
      Section 606 of the Millennium Challenge Act of 2003 (22 U.S.C. 
  7705) is amended--
              (1) in subsection (a)--
                      (A) in paragraph (1)--
                              (i) by amending the paragraph heading to 
                          read as follows:
              ``(1) In general.--'';
                              (ii) in the matter preceding subparagraph 
                          (A), by striking ``fiscal year 2004'' and 
                          inserting ``any fiscal year'';
                              (iii) by amending subparagraph (A) to read 
                          as follows:
                      ``(A) the country--
                              ``(i) has a per capita income that is not 
                          greater than the World Bank's lower middle 
                          income country threshold for such fiscal year; 
                          and
                              ``(ii) is among the 75 lowest per capita 
                          income countries, as identified by the World 
                          Bank; and''; and
                              (iv) in subparagraph (B), by striking 
                          ``subject to paragraph (3)'' and inserting 
                          ``subject to paragraph (2)'';
                      (B) by striking paragraph (2); and
                      (C) by redesignating paragraph (3) as paragraph 
                  (2);
              (2) in subsection (b)--
                      (A) in paragraph (1)--
                              (i) in the matter preceding subparagraph 
                          (A), by striking ``for fiscal year 2006 or a 
                          subsequent fiscal year'' and inserting ``for 
                          any fiscal year''; and
                              (ii) by striking subparagraphs (A) and (B) 
                          and inserting the following:
                      ``(A) has a per capita income that is not greater 
                  than the World Bank's lower middle income country 
                  threshold for such fiscal year;
                      ``(B) is not among the 75 lowest per capita income 
                  countries as identified by the World Bank; and
                      ``(C) meets the requirements under subsection 
                  (a)(1)(B).''; and
                      (B) in paragraph (2)--
                              (i) by striking ``for fiscal year 2006 or 
                          any subsequent fiscal year'' and inserting 
                          ``for any fiscal year''; and
                              (ii) by striking ``for fiscal year 2006 or 
                          the subsequent fiscal year, as the case may 
                          be'' and inserting ``for such fiscal year'';
              (3) by redesignating subsection (c) as subsection (d); and
              (4) by inserting after subsection (b) the following:
      ``(c) Maintaining Candidate Status.--Beginning in fiscal year 2012, 
  a country the per capita income of which changes during a fiscal year 
  so that the country no longer meets the requirements for being a 
  candidate country under subsection (a)(1) or (b)(1) shall, 
  notwithstanding that change in per capita income, continue to be 
  eligible to be a candidate country under subsection (a)(1) or (b)(1) 
  (as the case may be) during that fiscal year and the 3 fiscal years 
  thereafter to the same extent and in the same manner as if the per 
  capita income of the country had not changed.''.
target: Middle East and North Africa Transition and Development Act - States that it is U.S. policy to: (1) support a democratic transition in the Middle East and North Africa, including Egypt and Tunisia; and (2) increase economic prosperity in that region through financial investment and technical assistance and by utilizing the resources of appropriate multilateral development banks.
  
  States that U.S. negotiating objectives to expand the European Bank for Reconstruction and Development's (Bank) resources for countries in the Middle East or North Africa should be to seek: (1) specified lending criteria for loans or other Bank assistance for countries of activity (countries provided with Bank resources for loans or other assistance), and (2) establishment of a Bank mechanism to ensure that countries of activity not committed to multiparty democracy and market economics do not benefit from Bank resources.
  
  Urges the Secretary of the Treasury to use U.S. influence to: (1) oppose the approval of a loan or other Bank assistance to a country of activity in the Middle East or North Africa that does not meet specified criteria, and (2) seek the Bank's adoption of clear standards for the graduation of countries of activity that have substantially achieved required transition objectives.
  
  Amends the European Bank for Reconstruction and Development Act to authorize the U.S. Governor of the Bank to subscribe to additional shares of Bank stock. Authorizes appropriations for such purpose.
  
  Amends the Millennium Challenge Act of 2003 to: (1) revise candidate country criteria, and (2) permit a country that no longer meets the requirements for being a candidate country because of per capita income changes in a fiscal year to maintain such candidate status during such fiscal year and the next three fiscal years.
feat_title: A bill to support private sector development, employment growth, rule of law, democratic reform, and accountable government in qualified transition countries in the Middle East and North Africa through the authorization of the participation by the United States in the general capital increase of the European Bank for Reconstruction and Development, and for other purposes.